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Picture: 123RF/ZIMMYTWS
Picture: 123RF/ZIMMYTWS 

Wills as an instrument for better financial planning are the focus in this edition of Business Day Spotlight.

Host Mudiwa Gavaza is joined by advocate Sankie Morata, a certified financial planner and CEO of Sanlam Trust.

According to research by Sanlam, 75% of black South Africans do not have a will. Moreover, nearly half (45%) of those who don’t have one believe they don’t own sufficient assets to warrant estate planning. Another 45% indicate that they have simply not managed to get around to creating a will.

Morata says that that could have a significant negative effect on the dependants of the person who dies.

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The discussion focuses on reasons people tend to not have wills in place; how wills fit into the financial planning of one’s life; the psychology of money in society and how that filters into issues of dying without a will; how the law provides for situations where no will is in place; and ways in which take-up of such financial instruments can be improved.

Mudiwa Gavaza. Picture: DOROTHY KGOSI
Mudiwa Gavaza. Picture: DOROTHY KGOSI

The general rule is that only blood relations of a deceased person and their descendants may inherit should someone die without a will. This includes children, grandchildren, parents, brothers, sisters, grandparents, uncles and aunts.

Morata says that while some recent legal developments could potentially change things, dying without a will in place can still leave surviving dependants in a difficult position.

He highlights a lack of financial literacy as playing an important role in why many South Africans do not have a will.

The discussion also explores how deferring of wills fits into the broader issue of people generally being uncomfortable to openly discuss issues of money and finances in society.

As bleak as Sanlam’s report is, Morata says there has been an uptick in wills recently, spurred on by the destruction caused during the Covid-19 pandemic.

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Business Day Spotlight is a MultimediaLIVE production.

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