BUSINESS NEWS - Life moves fast. We start new jobs, get married, welcome children, launch businesses, navigate an ever-changing financial landscape and eventually, retire. 

Each of these milestones reshapes our lives, but we often forget that they should also reshape our financial plans. 

While we celebrate these moments, the reality is that they create an urgent need for a financial check-up - specifically, to revisit your will and update your beneficiaries.

It's a conversation many of us put off, primarily due to a few common myths, such as "I'm too young," "My assets aren't significant enough," or "My family will figure it out." In reality, however, a will isn't just about money; it’s a final act of care and last wishes to your family. It’s the peace of mind that comes from knowing you’ve done everything you can to protect them when you can no longer be there.

So, what happens if you don't have a will or if yours is outdated? The consequences can be devastating for the very people you want to protect.

Without a legal will, your assets won't be distributed according to your wishes. Instead, they will be handled by the state's laws of intestacy. This means that legislation dictates who gets what, and your specific instructions - like leaving a family treasure to a particular child or supporting a charity - are completely lost.

When a will isn't in place, the distribution of assets can lead to legal disputes and bitter family feuds. This adds significant emotional and financial stress to an already difficult time, often tearing relationships apart.

A will is where you can formally nominate a guardian for your minor children. Without it, a court will make this critical decision, potentially appointing someone you would not have chosen.

For business owners, a lack of a will can spell disaster. Without a clear succession plan, your business assets could be frozen, and the company’s future could be in jeopardy, threatening the livelihoods of your employees and the value you worked so hard to build.

A valid will is the single most important document for business continuity. Without one, the fate of your business is left to the courts and the Administration of Estates Act. This can lead to a long, drawn-out process where the business assets are frozen and operations may grind to a halt. 

A well-drafted will ensures a smooth transition, as you can explicitly name a successor or a skilled executor to manage the business. 

This prevents the business from losing value and protects the interests of employees, creditors, and your family.

A will allows you to formalise a succession plan that ensures the business can continue to operate and provide for your beneficiaries. For example, it can specify that a capable family member takes over the business, or it can provide instructions for its sale to ensure the best possible return for your loved ones. 

Ultimately, a will is a critical tool for protecting the business you built and securing your legacy.

Usufruct is also a powerful tool in estate planning, especially for business owners. For instance, a will could be drafted to leave the shares of the company to your children (the bare dominium owners), but grant your surviving spouse the usufruct. 

This provides your spouse the right to receive the income or dividends from the business for their lifetime, ensuring their financial security, while protecting the ownership interest for the next generation. 

This can prevent a situation where a business is sold unnecessarily to provide for a surviving spouse, ensuring the family's long-term legacy is preserved.

Just as you go to the doctor for a physical, your financial health requires regular check-ups. Major life events - marriage, divorce, the birth of a child, or a significant change in your financial position - are not just personal milestones; they're alerts that your financial plan needs to be updated.

Your beneficiary designations are just as important as your will. They control who receives the proceeds from your life insurance policies. 

If you've gone through a divorce but haven't updated your beneficiaries, your ex-spouse could still receive the funds you intended for your current family. This is a common and costly mistake that a simple review can fix.

Think of your financial adviser as your partner in this process. They are there to help you navigate these complex decisions, ensuring every detail is covered and that your wishes are legally binding. 

They can help you identify gaps in your current plan and offer solutions that safeguard your family's future.

Wills Week, which takes place from 15 to 19 September this year, is your motivation to act. Do the right thing for your loved ones. 

Scheduling a financial check-up is a simple step but is arguably one of the most powerful things you can do to secure your family's well-being. It’s a testament to your love and responsibility, ensuring that your legacy is exactly what you intend it to be.

Contact your financial adviser today to schedule a review.

By Walter Combrink, Life Risk & Fiduciary Manager at Momentum Financial Planning

‘We bring you the latest Garden Route, Hessequa, Karoo news’