With Wills Week (15-19 September) fast approaching, we have a timely story that’s more than just advice it’s a crucial reminder. An outdated will can trigger legal disputes, family feuds, and even destroy a business.
As life changes, so should your financial plans. New jobs, marriage, children, starting a business, or approaching retirement – these milestones not only reshape lives but also bring an urgent need to revisit financial documents, particularly wills and beneficiary nominations.
According to Walter Combrink, Life Risk & Fiduciary Manager at Momentum Financial Planning, too many people overlook this critical responsibility. “While we celebrate life’s milestones, they often trigger the need for a financial check-up,” says Combrink. “One of the most overlooked aspects is the need to update your will and review your beneficiary nominations.”
The myths holding people back
Many South Africans delay creating or updating their wills, believing myths like “I’m too young”, “I don’t own enough”, or “My family will sort it out.” But Combrink warns these assumptions can have costly consequences.
“A will isn’t just about distributing wealth – it’s your final act of care,” he explains. “It’s about ensuring your loved ones are protected and your wishes are respected when you’re no longer around.”
The high cost of doing nothing
Without a valid will, South African law steps in. Assets are distributed according to the laws of intestacy, not personal preference. Sentimental items, charitable bequests, or specific family arrangements are often ignored entirely. Worse, disputes between family members are common – and can quickly escalate into costly legal battles.
For parents, the stakes are even higher. Without a will, guardianship of minor children is decided by the courts, which may appoint someone the parents would never have chosen.
Business owners also face serious risks. If a clear succession plan is not included in a will, business assets may be frozen and the company’s operations disrupted – jeopardising employees’ livelihoods and the business’s long-term value.
“A valid will is the single most important document for business continuity,” Combrink says. “It protects everything you’ve built and ensures your intentions are carried out clearly and efficiently.”
Succession planning with usufruct
Combrink highlights a powerful yet underused estate planning tool: usufruct. In a well-structured will, shares in a business can be left to children while granting a surviving spouse the right to receive dividends for life.
“This kind of planning ensures your spouse is financially secure without forcing the sale of the business,” he notes. “It’s about preserving your legacy while protecting your family.”
Don’t forget beneficiaries
Just as critical as the will itself are beneficiary designations – particularly on life insurance policies. These override instructions in a will and determine who receives payouts directly. If left outdated, it’s possible for an ex-spouse to unintentionally inherit a policy meant for current dependants.
“This is one of the most common – and avoidable – mistakes we see,” says Combrink. “A simple review can prevent serious heartache.”
Your adviser is your best ally
Combrink encourages individuals to view financial planning as an ongoing process, not a once-off task. Life events like marriage, divorce, childbirth, or a change in financial position should trigger immediate updates to a financial plan.
“Think of your financial adviser like your GP,” he says. “They’re there to guide you through complex decisions, close any gaps in your planning, and ensure your wishes are legally binding.”
Wills Week is the time to act
With National Wills Week taking place from 15 to 19 September, now is the ideal time to act. Many legal professionals and financial institutions offer free will-drafting services during this time, making it easier for South Africans to take the first step.
“Scheduling a financial review is a small act with a massive impact,” Combrink concludes. “It’s one of the most powerful things you can do to protect your family, your business, and your legacy.”
Contact your financial adviser today to schedule a review and ensure your estate plan reflects your current life and intentions.
