Having a Will is an important part of estate planning, particularly for South Africans whose financial responsibilities to children, grandchildren or extended family continue into retirement.
According to FNB’s latest retirement insights, 74% of retirees surveyed said their cost of living in retirement was higher than expected, while 46% said healthcare costs had exceeded their expectations. More than a third also reported that retirement had been more challenging than anticipated.
While these findings do not indicate whether respondents have valid Wills, they highlight the financial pressures that can continue into retirement and the importance of considering how ongoing family responsibilities fit into longer-term financial and estate planning.
“A Will is relevant to anyone with assets or people they want to provide for, regardless of their age or income,” says Carin Meyer, Product Head for Wills at FNB Fiduciary. “You do not need a large investment portfolio for your wishes to matter. A home, savings or possessions may represent years of work and have considerable significance for the people you leave behind.”
Why a Will Matters for Your Family
A valid Will sets out how a person wants their estate to be distributed and allows them to nominate an executor. Without a valid Will, the rules of intestate succession determine how the estate is distributed, which may differ from what the deceased would have chosen.
The absence of documented wishes can also create additional uncertainty and administrative complexity for a grieving family. Depending on the circumstances, this could mean a surviving partner is not provided for as intended, a family home needs to be sold to settle debts, or a minor child’s inheritance becomes tied up in the administration process.
Having a Will does not eliminate estate administration or guarantee immediate access to an inheritance. Its value lies in providing clear instructions within the legal framework, alongside planning that considers an estate’s obligations and the needs of beneficiaries.
Estate Planning Goes Beyond Inheritance
For someone supporting family members during retirement, estate planning may require looking beyond who will inherit their assets.
For example, a retired parent who owns a home and uses their monthly income to support their children may intend to leave the property to them. However, this does not necessarily address how the family would cope with the loss of that monthly financial support or how the estate’s debts and administration costs would be covered.
“Retirement does not necessarily mean that your family stops relying on you,” says Renee Coughlan, Product Portfolio Manager at FNB Wealth and Investments. “If you are helping to pay a grandchild’s school fees or supporting an adult child, those commitments affect your financial plan.”
Liquidity is another consideration. An estate can contain valuable assets without having enough readily available cash to cover debts and administration costs.
“Estate planning should consider both who will inherit and how the estate will be administered,” says Meyer. “Reviewing liquidity and choosing an appropriate executor helps turn intentions into practical arrangements.”
Planning Should Change as Life Changes
Estate planning is not only relevant to retirees. Younger families may face different but equally important considerations.
A couple buying their first home and welcoming a child, for example, may need to consider guardianship arrangements, how a minor child’s inheritance will be managed and whether they have appropriate life cover.
FNB says the most common life events prompting people to draft or update a Will include marriage, the birth of a child, divorce and the death of a parent. The bank has also observed that many customers only update their Wills every seven to ten years, if at all.
Common errors identified in Wills include outdated beneficiary nominations, missing signatures and Wills that have not been reviewed following a major life event.
For business owners, estate planning can also involve succession and continuity, particularly where employees, partners or family members depend on the business.
Ultimately, building wealth and transferring wealth are different parts of financial planning. Retirement planning focuses on accumulating and preserving assets, while estate planning considers how those assets will be transferred and how the estate’s obligations will be met.
For families carrying financial responsibilities across generations, having these conversations before they become urgent can help ensure that their wishes are clear and that those who depend on them are considered in the planning process.
