Wills

A Will is a function of your estate. It is a record of how you want your assets and liabilities dealt with after you are dead. A Will is therefore an essential part of estate planning.

As it is a crucial area of financial planning it is worth getting advice if you are drawing up a Will. If you do not have a Will, you die intestate (without a Will) and the laws of intestate succession apply.

In other words, the law of the land designates beneficiaries according to specific kinship. The two key elements of a Will are:

• To ensure that your estate is distributed according to your wishes
• To ensure that your estate is effectively administered

Executors

You can also use your Will to appoint executor/s who are responsible for ensuring that the terms of your Will are carried out. Ideally this should be someone like a trusted member of the family or your lawyer.

If you do not have a Will, or appoint an executor, an executor will be appointed by the state.

Trusts

A Trust is a legal entity that can be established in order to holds and administer assets on your behalf. Whether it makes sense to establish a Trust depends on your individual circumstances. Some common reasons for setting up a Trust include:

• To provide for dependents
• To provide for management of your assets should you become unable to oversee them yourself
• To cut through red tape and facilitate the transfer of your assets immediately to your beneficiaries upon your death
• To reduce estate taxes or provide the liquid assets to help pay for them

Check with your adviser before deciding if a Trust is right for you.