It’s that time of year again when you’re swapping out your winter wardrobes for summer, having a long-overdue de-clutter and booking annual check-ups for the family. “While you’re at it,” suggests PJ Veldhuizen, managing director of specialist, commercial law firm, Gillan and Veldhuizen Inc., “take the opportunity to re-evaluate your personal estate documents and give the administrative side of your life a thorough spring-clean too!”
“Our circumstances, assets and status, not to mention general terms and conditions, compliance, administration and legislation, can change significantly from one year to the next,” explains Veldhuizen. Having dealt with matters that could have been avoided if the parties had regularly reviewed their personal documentation, Veldhuizen says that it is extremely important to have an annual meeting with yourself to review and rework the administration of your personal estate and adjust the supporting documentation where needed.
Your will
Your will is a living document and probably the most important one to revisit. The first step is to make sure your executor is still the correct person to appoint, review your wishes and in light of changed circumstances, make sure your assets are all accounted for. “In fact,” stresses Veldhuizen, “don’t mess around and attempt a do-it-yourself version.” There’s no shortage of advice on the importance of drafting a will and having a plan for when you die but if you have no succession plan in place, Veldhuizen cautions against relying on free services, as these might not address all necessary matters.
Another consideration is discussing your will with your heirs or beneficiaries so that they may understand the practical implications of your decisions. Who knows, they might just have alternative suggestions that make more sense and ensure your plans will work effectively.
Your trust
If you have a trust set up, you need to assess your appointed trustees, make sure your beneficiaries are correct, and ensure that the assets are being managed properly. Additionally, make sure the trust is compliant. New Trust Property Control Act regulations, for instance, demand disclosing beneficial owners. “While this isn’t new, the rules mandate consistent updates in a specified format for any beneficiary personal-detail changes to thwart financial crimes like money laundering and terrorist financing,” explains Veldhuizen.
Your life Insurance
Arguably the most neglected of all documentation is that of life insurance policies. Often taken out when you have a child or enter the adult world, a life insurance policy is very necessary at a certain stage in your life but can become a burden. “Perhaps your children are grown up, out of the house, and self-sufficient and a life policy is no longer the best option,” says Veldhuizen. “It’s possible that better use can be made of the monthly premium in an investment of some sort.”
Your short-term insurance policies
Your insurer or broker should facilitate an annual review to ascertain your position. However, Veldhuizen says that’s often not sufficient. “Simply accepting an annual review would be imprudent,” he advises. “The insurance industry is competitive by nature, and a careful review and shop-around can save you many a penny on your monthly premium. Ignoring your annual review is reckless,” he continues. “We have often seen clients insuring assets that are no longer owned by them for years—it happens easily!”
Your medical aid
Are you getting the most benefit out of your medical aid? Should you upgrade or downgrade your policy? Check your dependents and ask your medical aid for a policy review. It’s likely they can offer better premiums or have developed new products that might better suit your needs.
Your bank account
Check your bank account and comb through your debit orders and subscriptions. You might be surprised how many unnoticed payments are automatically going off your account. Scrutinise your bank fees and charges and investigate if there are cost-effective alternatives. Do the math on interest charged and how the debit order dates affect any contract payments to which you might be bound.
The more you consider the consequences of ignoring your paperwork, the clearer it becomes that procrastination may be more than a thief of time. And anyway, a good de-clutter always leaves you with a feeling of accomplishment.