Although the law has provided guidelines for the distribution of your assets after your death, you have the power to have the final say on many aspects of this process by drawing up a will. Tyler du Plessis discusses the role of a well-considered, valid will in every investor’s estate plan.
The Law Society of South Africa will be conducting its annual National Wills Week campaign from 15 to 19 September 2025. The campaign aims to promote public awareness around the importance of having a valid will. During National Wills Week, qualified attorneys across South Africa offer will-related legal services to the public, provide education about the importance of estate planning and assist in preparing basic wills at no cost. We encourage investors to take advantage of this initiative by consulting with a professional attorney and ensuring that their affairs are in order by executing a valid will.
Why a valid will matters
A will is a legal document that records how your assets should be distributed upon your death and may include specific bequests, the nomination of heirs, the appointment of an executor to manage your estate, the nomination of a legal guardian to care for your minor children and directions regarding your funeral preferences.
Executing a valid will provides essential legal and personal safeguards, including:
- Protection of loved ones: Your assets will be distributed according to your wishes and safeguard the financial wellbeing of those you care about.
- Minimisation of disputes: Clear and legally binding instructions can prevent conflicts among heirs.
- Streamlined estate administration: Beneficiaries experience simpler legal processes and minimised delays.
- Appointment of a trusted executor: You can designate a reliable person to manage and distribute your estate according to your intentions.
- Provision for minor children: You can nominate a legal guardian or make provision for a trust to be created to manage your minor children’s inheritance until they reach the age of majority.
According to the Financial Sector Conduct Authority, more than 70% of working South Africans do not have a will. Passing away without a valid will can place significant financial and emotional strain on your loved ones as they navigate the complexities of distributing your estate during an already-challenging time. If you do not have a valid will in place when you die, your estate will be distributed according to the Intestate Succession Act. This process has significant legal and emotional implications, such as:
- Delays and increased costs: Intestate estates typically take longer to administer and may incur higher legal fees, ultimately diminishing the value of your estate and reducing the inheritance available to heirs.
- No control over heirs: Assets are distributed according to a set formula. You lose the ability to choose who inherits your assets, and sentimental or personal assets cannot be allocated to specific heirs.
- No control over executor appointment: The executor is nominated by heirs in consultation with the Master of the High Court. This may not have been the person that you intended to administer your estate.
- Uncertain guardianship of minor children: An application will have to be made to the court for an order granting guardianship. This takes time, entails legal costs and may result in the appointment of a person other than your preferred choice.
Assets not governed by your will
While having a valid will in place is key for the reasons set out above, it is important to understand that some of your assets either fall outside of your estate or will be distributed according to your specific beneficiary nominations.
Retirement fund investments, such as the Allan Gray Retirement Annuity, Allan Gray Preservation funds and Allan Gray Umbrella Retirement Fund, are excluded from your estate. The trustees of the retirement funds are mandated to distribute these death benefits according to section 37C of the Pension Funds Act (“the Act”), prioritising financial dependants. The intention of the Act is to ensure that no one who was financially dependent on you is left without support. The trustees’ decision overrides your will and nominations; however, the information you supply is critical to support the trustees in their investigation.
Investments that are structured as long-term insurance policies, such as the Allan Gray Living Annuity, Allan Gray Endowment and Allan Gray Tax-Free Investment, must be dealt with according to your beneficiary nominations submitted to the product provider, regardless of the provisions set out in your will.
It is therefore crucial that you keep your beneficiary nominations on these types of investments up to date. You can review and update your beneficiary nominations for your investments via your secure Allan Gray Online account.
Getting your affairs in order
A will is one of the most important documents that you will execute. It furnishes control, clarity and peace of mind over how your assets will be dealt with when you are no longer around. To safeguard your wishes, ensure that you use the services of a qualified professional to execute, review and amend your will regularly to align with your intentions. You should also let a trusted individual know where you store your legal documents (including your last will and testament).
If you have not drafted a will yet, National Wills Week is a great time to discuss your intentions with a legal professional. Visit the Law Society's website to find a participating attorney in your area.