Planning: The Importance of Wills and Trusts Management
Do you lie awake at night worrying about what will happen to your assets and money, should you pass on? Or, maybe how your kids will be looked after? Nowadays, especially in South Africa’s current economic decline, it is not only challenging to accumulate wealth, but it is even tougher safeguarding it. No one likes to think or talk about death, but death is inevitable, and if you want to make sure your hard-earned assets and money go to your loved ones, then you need to plan. As a credible law firm that specialises in estate planning, we are here to shed some light on the importance of the proper management of wills and trusts.
A Will Does More than Distribute Property
The cornerstone of your estate plan, a will is one of the most important documents that every individual over the age of 18 should have. Regardless of financial status, a will is a legal document that outlines your wishes for the distribution of your property as well as for the care of your loved ones. Unfortunately, if you pass away without a will, the state will distribute your property and assets according to how they see fit, which could be contrary to how you would have wanted it allocated. Paving the way for a smooth transition of your assets, a will does more than just allocate assets to loved ones. A will can also name an executor to wrap up your estate, create trusts for your children or other beneficiaries, as well as name guardians for your children and their property.
Trust Management is an Effective Wealth Protection Strategy
In addition to wills, trusts are popular estate-planning tools, so much so that each year in South Africa, over 10 000 new trusts are registered. Trusts are an effective procedure, in the event of a death, divorce, or insolvency, to safeguard both families and organisations from any claims made against their estates. While trusts can be used to accomplish a number of estate-planning goals, first and foremost, they need to be managed properly. Unlike a will, a trust provides a third party or trustee to manage your assets on your behalf (an inter-vivos trust) or your beneficiaries (a testamentary trust).
If you are looking for an accredited attorney firm that specialises the management of wills and trusts, choose to partner with Velile Tinto & Associates. To learn more about our management of wills and trusts, chat to one of our highly qualified experts today.