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Rands & Sense
COVID-19 A REMINDER TO ENSURE YOUR AFFAIRS ARE IN ORDER
Mark Hawes
WITH over 50 000 South Africans dying of Covid-19-related illnesses in the past year, the pandemic has forced us to face our own vulnerability and take stock of our lives. Ensuring that our financial affairs are in order is now imperative. With even healthy and young people dying, the question of “what will happen to my family if I pass away” has never been more important. Your death can place a massive administrative burden on your loved ones long after you have passed. Having a “ready to depart” file with all the documents and information necessary in the event of your death will assist your family. They will have access to your will, living will, passwords and title deeds, for example. Having all these documents in a single file or folder allows for ease of reference and access during what will be an extremely emotional and stressful time for them. The following items are crucial to include in your personal “ready to depart” file, which can be kept in a safe or filed with your lawyer for safekeeping: 1. Important documents Keep a record of the contact details of your lawyer, insurance broker and financial adviser, all of whom need to be notified when you die. Include in your file copies of your birth and marriage certificates, antenuptial contract, divorce agreement, any family death certificates, your ID book or card, will, and your living will, if you have one. Include the most recent tax assessments for both yourself and your partner, car ownership documents and any title deeds for properties. If you own a business or shares of a company, include important documents such as partnership agreements. 2. Medical details In the case of medical incapacitation, it is a good idea to keep a record of your medical history and that of dependent family members. Record details of your medical scheme and gap cover policies, and the number of your broker, if you have one. 3. Personal details Keep a safe record of passwords or pins for phones, computers and bank accounts – you can encrypt them using an app such as LastPass. Include a letter detailing your desired funeral arrangements. Write down a list of your bank accounts and a list of debit orders which go off every month. List the number of your financial adviser. Estate planning not only includes your financial affairs but your legacy and beneficiary structuring and planning. Some areas that need setting up include ensuring funeral arrangements are in place and understood; appointing guardians for minor children (and informing the guardians of your wishes); and setting up trusts and appointing trustees as well as competent executors. You can start by having an effective will in place, and making sure there is enough money on death to settle debts and to provide for dependants. If you do not have enough money to provide for these outcomes, you should have life insurance in place to cover them. A professional financial planner can assist you, providing advice and guidance to get you to where you need to be. Hawes is a Certified Financial Planner and financal consultant at Alexander Forbes
