It is important to plan for your future, even if you are no longer there to enjoy it.
The Intestate Succession Act applies in instances where a person passed away without leaving a valid last Will & Testament.
It is a common misconception that assets of a deceased person automatically pass to his spouse, or, if unmarried, to the deceased’s children.
Irrespective of whether a person was married in or out of community of property, the estate is not automatically inherited by the surviving spouse, and especially when the deceased had any children.
The Intestate Succession Act does not automatically exclude children from inheriting, and depending on the value of your estate it could result in children and spouses inheriting from your estate and having to share assets in differing shares.
The Intestate Succession Act stipulates that your spouse inherits R 250 000 or a child’s share – whichever is more.
A child’s share is calculated by dividing the balance available for distribution and dividing it by the number of children, plus one (representing your spouse).
In other words, if you have 2 children, the balance available for distribution would be divided by 3.
If the child’s share is less than R 250 000, the spouse will inherit R 250 000 (or the value thereof) and the balance will be divided equally between the children.
Apart from the legal process to inherit assets and legally owning them, it is also important to consider that you need to bequeath assets to the persons you intend for them to inherit and to avoid that your estate is distributed according to the stipulations of the Intestate Succession Act.
The only way to ensure that your intended loved ones inherit according to your wishes, is to execute a valid Will, with the help of the professionals who can help you plan.
