Will your family be able to survive financially once you die?
Legally, there is a possibility of your bank accounts as well as assets/properties being frozen for a substantial amount of time after your death. Do you have systems in place to ensure that your family is provided with sufficient funds to survive?
Probate:
Probate is a judicial process which takes place after one’s death. A process in which a Will ought to be proven to be valid in addition to it being the last true testament of the deceased. This process in terms of duration takes from 9 months to two years. So for this period, the family doesn’t have access to the assets and possessions of the deceased.
Marriage In Community of Property:
Such an arrangement is part of a joint estate, as a result, such accounts are frozen until an Executor is appointed. However, all accounts in the name of the surviving spouse will remain functional.
The deceased is the breadwinner:
This scenario presents a bit of difficulty, however the Law does provide a guideline in this regard. The Administration of Estates Act allows the Bank or the Master of the High Court to make funds available and accessible for the deceased’s dependants as well as to cover funeral expenditures. Such a provision can be effected by the family seeking relief from the High Court for a letter that authorizes the bank to make the funds available and accessible to the family. In terms of funeral expenditure, The Master of the High Court can issue a letter asking the bank to make funds available for this certain cause.
The Solution? Establish a Trust.
To avoid hardship and financial instability as a result of your death, it is advisable to establish a Trust where you and your family can transfer your possessions and assets. It is important to note that a Trust will not be frozen as a result of a spouse’s death, therefore surviving spouse as a trustee is legally enabled and validated to access the funds.
Manzankosi Corporate Legal Consultancy can assist you with establishing a family trust.
MCLC is more than competent and qualified to assist you with establishing financial security and stability for your loved ones through the formation of a trust. If you want your family to live at ease even after your death, contact MCLC and you will be assisted by a qualified legal practitioner on the way forward.
