Wills & Estates

A Last Will and Testament is a legal document that records your wishes regarding the distribution of your assets and the care of any minor children after your death. It names your chosen beneficiaries, appoints an executor to administer your estate, and may include instructions for your funeral.

In South Africa, a valid will must be in writing, signed by the testator (the person making the will) in the presence of two competent witnesses, and signed by those witnesses in the presence of the testator and each other. Witnesses may not be beneficiaries under the will.

A Last Will and Testament typically covers:

• The distribution of your assets: who inherits what, and in what proportions
• The appointment of an executor: the person responsible for administering your estate
• The appointment of a guardian for minor children
• The creation of a testamentary trust for minor or vulnerable beneficiaries
• Specific bequests: particular items left to particular people
• Funeral and burial wishes
• The settlement of debts and liabilities from the estate

A will does not automatically cover assets held in a trust, retirement fund benefits, or life assurance policies with nominated beneficiaries - these are governed by their own nomination documents and fund rules.

Technically yes, a handwritten (holograph) will is legally valid in South Africa provided it meets the formal requirements of the Wills Act 7 of 1953. It must be signed by you and two competent witnesses who are present at the same time, none of whom may be beneficiaries.

However, a poorly drafted will is one of the most common causes of family disputes, delays in estate administration, and unintended consequences.

Even small errors in wording or execution can invalidate a bequest or create ambiguity that requires court intervention.

At Ambiton, we strongly recommend having your will drafted by a qualified professional to ensure it accurately reflects your wishes and will withstand legal scrutiny.

Yes. A will can be amended or replaced at any time during your lifetime, provided you have testamentary capacity (the legal and mental ability to make a will).

Changes are made by either:

• Drafting a new will that explicitly revokes all previous wills
• Adding a codicil: a formal amendment to an existing will that must be executed with the same formalities as the original

Informal changes such as crossing out text, writing in the margins, or adding sticky notes are not legally valid and can create confusion or invalidity.

We recommend reviewing your will after any major life event such as marriage, divorce, the birth of a child, the death of a beneficiary, or a significant change in your assets.

If you die without a valid will (known as dying intestate), your estate is distributed according to the Intestate Succession Act 81 of 1987. This means the law (not you) decides who inherits your assets.

The Act prescribes a fixed formula for distribution among a surviving spouse and children, which may not reflect your actual wishes.

Dying intestate also typically results in:

• A longer and more complicated estate administration process
• Potential conflict between family members over the distribution
• No provision for unmarried partners, who receive nothing under intestate succession
• No guardian appointed for minor children — the court decides
• Increased costs to the estate

Having a valid, up-to-date will is one of the simplest and most important financial planning steps you can take.

Despite the similar name, a living will and a Last Will and Testament are entirely different documents.

A Last Will and Testament takes effect after your death and deals with the distribution of your assets and the care of your dependants.

A living will (also called an advance directive or advance health care directive) takes effect during your lifetime if you become incapacitated and unable to communicate your wishes. It records your instructions regarding medical treatment for example, whether you wish to be resuscitated, whether you consent to life support, and under what circumstances you would want treatment withheld.

Both documents are important components of a comprehensive estate plan. Ambiton assists with the drafting of both.

The cost of drafting a will in South Africa varies depending on the complexity of your estate and the professional you engage. A simple will for an individual or couple can range from a few hundred to a few thousand rand when prepared by an attorney or financial planner.

Some banks and insurers offer will drafting services, though these are sometimes subject to conditions such as requiring the institution to be named as executor, which may not always be in your best interest.

At Ambiton, will drafting is part of our comprehensive estate planning service. Contact us to discuss your requirements and get an indication of costs based on your specific circumstances.

Your executor is the person or institution responsible for administering your estate after your death: collecting assets, settling debts, paying taxes, and distributing the inheritance to your beneficiaries. It is one of the most important appointments in your will.

You can appoint:

• A trusted family member or friend: though this is a significant administrative burden, and they may need professional assistance
• A professional: such as an attorney, financial adviser, or trust company who has the expertise to handle the process efficiently
• A combination of both: a family member as co-executor alongside a professional

Ambiton can be appointed as executor in your will, or can assist a family member who has been nominated in that role. We manage the full administration process on your behalf, from the preliminary interview through to final distribution.

In South Africa, a will must be signed in the presence of two competent witnesses who are both present at the same time. The witnesses must also sign the will in the presence of the testator and each other.

A competent witness must be:

• At least 14 years of age
• Not a beneficiary under the will, or the spouse of a beneficiary - a beneficiary who witnesses the will does not invalidate the will itself, but forfeits their inheritance

Common choices for witnesses include colleagues, neighbours, or friends who have no interest in the estate. A notary is not required in South Africa, though having the will stored securely with your attorney, the Master of the High Court, or a trusted institution, is strongly recommended.

Estate planning is the process of arranging, during your lifetime, for the orderly transfer and administration of your estate after your death. It ensures that your assets go to the right people, at the right time, in the most tax-efficient way possible.

Estate planning is important because without it:

• Your assets may not be distributed according to your wishes
• Your estate may pay significantly more estate duty and capital gains tax than necessary
• Your beneficiaries may wait months or years before receiving their inheritance due to liquidity problems in the estate
• Your business may be forced to wind up or sell assets to settle estate liabilities
• Minor children may be left without adequate financial provision or a nominated guardian

Comprehensive estate planning addresses all of these risks proactively, while you are still alive and able to make informed decisions.

Comprehensive estate planning typically involves:

• Drafting or updating your Last Will and Testament
• Reviewing beneficiary nominations on life assurance policies and retirement funds
• Assessing potential estate duty and capital gains tax liabilities
• Ensuring sufficient liquidity in your estate to settle debts and taxes without forcing asset sales
• Considering the use of trusts to protect and preserve wealth across generations
• Reviewing your marital contract and its implications for your estate
• Appointing an executor and, if you have minor children, a guardian
• Drafting a living will and power of attorney

Estate planning is not a once-off exercise. It should be reviewed regularly and updated after any major life event.

A will is one component of estate planning but estate planning is much broader.

Your will records your wishes for the distribution of your assets after death.

Estate planning is the comprehensive process of structuring your affairs during your lifetime to minimise tax, protect your assets, ensure liquidity, provide for your dependants, and make the administration of your estate as straightforward as possible.

Think of it this way: a will tells people what to do with your estate. Estate planning determines what your estate looks like when you die and ensures it is structured in the best possible way for the people you leave behind.

A comprehensive estate plan typically includes the following documents:

• Last Will and Testament: the foundational document recording your wishes for asset distribution
• Living will: recording your medical treatment wishes if you become incapacitated
• General power of attorney: authorising a trusted person to act on your behalf while you are alive but unable to manage your affairs
• Trust deed: if a trust forms part of your estate plan
• Updated beneficiary nomination forms for retirement funds and life assurance policies
• A record of your assets, liabilities, and key account information for your executor

Ambiton assists with the preparation and co-ordination of all of these documents as part of our estate planning service.

The cost of estate planning in South Africa depends on the complexity of your estate and the services required. A basic estate plan, including a will and a review of your beneficiary nominations, is relatively affordable.

More complex planning involving trusts, tax structuring, and business succession can involve more significant professional fees.

It is worth considering the cost of estate planning in the context of the cost of not planning: estate duty in South Africa is levied at 20% on the dutiable value of your estate above R3.5 million (and 25% above R30 million). Proper planning can significantly reduce this liability and preserve more of your estate for your beneficiaries.

Contact Ambiton for a no-obligation consultation to discuss your estate planning needs and an indication of costs.

The honest answer is: now. Estate planning is not only for the elderly or the wealthy. Anyone who owns assets, has dependants, runs a business, or has specific wishes about what happens after their death benefits from having a plan in place.

Particular life events that should trigger a review of your estate plan include:

• Getting married or divorced
• The birth or adoption of a child
• Purchasing a home or other significant asset
• Starting or buying a business
• The death of a beneficiary or executor named in your will
• A significant change in your financial position
• Reaching retirement age

Your estate plan should be a living document, reviewed and updated as your life changes.

Business owners face unique estate planning challenges that individuals without a business interest do not. Key considerations include:

• Business succession: who takes over the business if you die or become disabled, and on what terms
• Buy and sell agreements: legally binding arrangements between business partners, funded by life assurance, that ensure a smooth transfer of ownership
• Keyman assurance: protecting the business against the financial impact of losing a key person
• Contingent liability cover: protecting your personal estate from business debts you have personally guaranteed
  Valuation of the business interest for estate duty purposes
• Liquidity planning: ensuring your estate has sufficient cash to settle liabilities without forcing a sale of the business

At Ambiton, we advise on both the personal and business dimensions of estate planning, ensuring that your personal and commercial interests are protected and aligned.

A trust is a legal arrangement in which one party (the trustee) holds and manages assets on behalf of another party (the beneficiary), in accordance with the terms of a trust deed. In estate planning, trusts are used to:

• Protect assets from creditors and potential future claims
• Provide for minor children or vulnerable beneficiaries without giving them direct access to large sums of money
• Reduce estate duty by removing assets from your personal estate during your lifetime
• Preserve family wealth across generations
• Avoid the delays and costs of the formal estate administration process for assets held in the trust

Trusts are a powerful but complex planning tool. Whether a trust is appropriate for your situation depends on the nature and value of your assets, your family structure, and your long-term objectives.

Ambiton assists with the drafting, registration, and ongoing administration of both inter vivos trusts and testamentary trusts.

An inter vivos trust (also called a living trust) is created and comes into effect during your lifetime. Assets are transferred into the trust while you are alive, removing them from your personal estate. An inter vivos trust is commonly used for asset protection and estate duty planning.

A testamentary trust is created through your will and only comes into existence after your death. It is typically used to provide for minor children or other dependants who should not receive a direct inheritance immediately. The trust holds and manages the assets on their behalf until they reach a specified age or milestone.

Both types of trust require a trust deed setting out the terms, appointed trustees, and beneficiaries. Ambiton assists with the drafting and administration of both.

A will and a trust serve different purposes and work in different ways:

• A will takes effect after your death and goes through the formal estate administration process, which is subject to oversight by the Master of the High Court and can take 12 months or longer
• A trust (inter vivos) takes effect during your lifetime and assets held in the trust do not form part of your deceased estate, bypassing the formal administration process entirely
• A will is a public document once lodged with the Master; a trust deed is private
• A will can be contested; a properly structured trust is significantly harder to challenge

Many comprehensive estate plans use both, a trust for assets you want protected and transferred efficiently, and a will for remaining personal assets and to appoint guardians for minor children.

Estate administration is the formal legal process of winding up a deceased person’s estate. It involves collecting and valuing all assets, settling all debts and liabilities, paying any taxes due, and distributing the remaining assets to the beneficiaries in accordance with the will (or the Intestate Succession Act if there is no valid will).

In South Africa, estate administration is overseen by the Master of the High Court and is governed by the Administration of Estates Act 66 of 1965. The process typically takes between 35 and 60 weeks from the date of death to final distribution, depending on the complexity of the estate.

The estate administration process in South Africa follows these key steps:

• Date of death: Obtain the death certificate, establish whether a valid will exists, and gather the deceased’s documents
• Preliminary interview: Identify beneficiaries, establish assets and liabilities, and complete the necessary reporting documentation
• Appointment of executor: The Master of the High Court formally appoints the executor and issues Letters of Executorship
• Advertisement for creditors: Published in the Government Gazette and a local newspaper; creditors have 30 days to lodge claims
• Liquidation and distribution account: A full account of all assets, liabilities, and proposed distributions is drawn up and lodged with the Master
• Inspection period: The account lies open for inspection for 21 days; objections can be lodged
• Distribution: Once the account is confirmed, creditors are paid and assets are transferred to beneficiaries
• Sign-off: The executor provides the Master with proof that all creditors have been paid and the estate is finalised

The process is significantly more straightforward when a valid will is in place and an executor has been nominated.

Estate duty is a tax levied on the dutiable value of a deceased person’s estate in South Africa. The current rates are:

• 20% on the dutiable value of the estate up to R30 million
• 25% on the dutiable value above R30 million

Every South African estate benefits from a primary abatement of R3.5 million, meaning the first R3.5 million of the dutiable estate is not subject to estate duty. There are also deductions available for bequests to a surviving spouse and certain other amounts.

Effective estate planning can significantly reduce the estate duty payable for example through the use of trusts, life assurance policies payable outside the estate, and structured gifting during your lifetime.

This is one of the primary reasons estate planning is so important for anyone with a sizeable estate.

Retirement fund benefits (pension funds, provident funds, and retirement annuities) do not automatically form part of your deceased estate and are not distributed in terms of your will. They are governed by the Pension Funds Act, which requires the fund trustees to identify and provide for all financial dependants of the deceased, regardless of the beneficiary nomination form.

Your beneficiary nomination form is an important guide for the trustees, but it is not legally binding - the trustees must exercise their discretion in the best interests of all dependants. This is why it is critical to keep your nomination form updated and to communicate clearly with your financial adviser about your wishes and dependants.

Life assurance policies with a nominated beneficiary are paid directly to that beneficiary outside the estate, provided the nomination is valid and up to date.

Some basic elements of estate planning such as completing a beneficiary nomination form or drafting a simple will can technically be done without professional assistance.

However, for most people, attempting to navigate estate planning without professional guidance carries significant risk.

Common mistakes made by people who plan without professional help include:

• Wills that are technically invalid due to execution errors
• Unintended tax consequences from poorly structured asset ownership
• Trusts that are improperly constituted or administered
• Retirement fund nominations that conflict with actual dependant obligations
• No liquidity provision, forcing the sale of assets to settle estate liabilities

The consequences of these mistakes typically fall on your beneficiaries at the worst possible time.

At Ambiton, we offer a no-obligation estate planning consultation to help you understand what you need and what it involves.