It is our belief that the correct way to plan your estate is via a trust or a number of trusts. Yes, you can plan your Estate via a Will which is an absolute necessity whether you have a Trust or not but the benefits of running your financial affairs via a Trust far outway the benefits of running your affairs in your own Personal Name where you use a Will to plan what happens to your financial affairs after your death.
Benefits of a Will
- You will not die intestate (without a Will) allowing you to decide on how your assets are to be bequeathed to (given to) your Beneficiaries and under what circumstances.
- A Will allows for a quicker winding up of your Estate than if you died intestate.
- The chances of family infighting are substantially reduced.
- It will provide a mechanism via a Testamentary Trust, a Trust formed only on your death to look after minor children or a disabled child, sibling or parent.
Disadvantages of a Will
- Your Estate is frozen on your death creating practical difficulties for your Beneficiaries
- A Will in no way prevents or limits the amount of Estate Duty or Capital Gains Tax being payable on your death.
- A Will cannot protect your Estate from Creditors
- It takes a long time to wind up your estate via a Will and though quicker that dying Intestate, it will take on average 2 years to wind up your Estate. This is not to say that it cannot be done quicker but it is unfair for someone to say that it can be wound up in six months where in reality it cannot.
- Only what is left after paying all death bed Expenses like Estate Duty, Capital Gains Tax, Bonds, Overdrafts, Medical expenses etc can be placed into a Testamentary Trust. Thus there is no way via a Will that you can reduce or limit these Death Bed expenses.
- Anybody has the right to inspect or read your Will