Essential Estate Planning: Preparing Your Digital and Physical Assets for Survivors

 

Planning for your death is a crucial task that many people overlook or postpone. This article emphasises the importance of preparing for the inevitable to ensure your wishes are respected and to ease the burden on your loved ones during a difficult time.

I have posted a Wishes and Memories booklet on our website that will be a clear record of your funeral wishes, a source of important documents for legal and public records, and a permanent keepsake of your fondest memories to speak to future generations.

Last Will and Testament

A will is a legal document that outlines how you want your assets and property distributed after your death. It's a crucial component of estate planning in South Africa. The advantages of having a will:

• You decide who inherits your property and assets.
• You can specify guardians for minor children.
• You can choose an executor to manage your estate.
• It can help reduce potential conflicts among family members.
• If you die without a valid will in South Africa, your estate will be distributed according to the Intestate Succession Act 81 of 1987. This Act prescribes how your assets should be divided among your surviving spouse, children, parents, and other relatives. The distribution may not reflect your personal wishes.

Living Will

In South Africa, a living will serves as a guide for your family and medical professionals. The advantages of having a living will:

• It outlines your wishes for medical treatment if you become incapacitated and unable to communicate.
• It reduces the burden on family members who might otherwise have to make difficult decisions.
• It can prevent family conflicts over your medical treatment.
• While not legally binding, it can inform medical professionals of your preferences regarding life-sustaining procedures.

Managing Digital and Physical Assets in South Africa

Physical Assets

To help your survivors manage your physical assets in South Africa create a box file (and inform a trusted person where to find it) containing:

• Important documents such as your will, living will, marriage certificate, insurance policies, title deeds, insurance policies, vehicle papers, timeshare information, etc.
• List of creditors (credit cards, loans, mortgages, store accounts)
• List of important contacts (broker, lawyer, doctor, financial advisor)
• List of family and friends to contact upon your death
• Information about subscriptions and services (e.g., TV, security, insurance)
• Security codes and keys for safes, post office boxes, etc.
• Funeral wishes and burial/cremation preferences
• Instructions for handling subscriptions and services like DStv and home security.

Digital Assets

Digital assets are often overlooked but are increasingly important:

• List all your virtual accounts, usernames, and passwords, including email, social media, and online shopping accounts.
• Create a digital estate plan, either in your will or a separate document, instructing your executors on how to handle your online presence and whether to keep your social media sites current or delete them. You may, for example, want your executors to notify your friends or connections of your passing, and to keep the sites open, as a memorial. If you decide to memorialize your accounts, X (Twitter) and Facebook will shut down your account, but your executors can set the privacy so that only confirmed family and friends can see the profile and leave posts on the profile Wall, in remembrance. You should nominate someone who is technically savvy to manage the digital side of your estate.
• See this excellent article on Why you need a digital estate plan and how to create one.

Additional Considerations

• Regularly update your beneficiaries on retirement accounts, life insurance policies, and other financial products.
• Review and update your estate plan regularly, especially after major life events like marriage, divorce, or the birth of children.
• Consider the potential for inheritance disputes, and structure your estate plan accordingly.
• If you have a complex family situation or a large estate, consider consulting with an estate planning attorney for more comprehensive guidance.
• Set reminders: Schedule regular reviews of your estate plan to keep it up to date.

Conclusion

While planning for your death may seem morbid or unnecessary, it's one of the most considerate things you can do for your loved ones. By taking the time to organize your affairs, create necessary legal documents, and communicate your wishes, you can significantly reduce the stress and potential conflicts that often arise after someone's passing.  Remember, the goal isn't to create a perfect estate plan but to have at least the bare minimum in place. Even basic preparations can make a world of difference to those you leave behind. Start with writing a will to avoid intestate succession, creating a living will, organizing your important documents, and informing your loved ones about where to find this information. Then, as time allows, you can refine and expand your plan to ensure all aspects of your estate are properly managed according to South African law.