If you think a will is only for the rich or famous or that drawing up a will is an expensive or complicated process, think again.
More than half (51%) of South Africans surveyed in the 2024 Sanlam Legacy Survey don’t think they need a will because they don’t own enough to justify having one; 40% admit they want a will, but they have not yet gotten around to drafting one.
The 2024 Sanlam Legacy Survey, conducted amongst 1 200 South African online respondents, nevertheless confirmed that while only 35% of respondents have a will, 98% of them expressed a keen desire to leave a legacy for their loved ones.
The truth, says Amrith Bishoon, Executive Manager at Sanlam Legacy, is wills are not only for people who have a lot of money or assets. “In fact, not having a will can profoundly impact the future of your family when you pass away, irrespective of whether you owned a lot or not.”
Think of a will as a legal document that not only describes who should get what when you pass away, but as one that also clearly states your wishes about who will look after your children after your death. If you have children with special needs, or if you have concerns about how your children’s education and the money you leave behind for them should be managed, a will is all the more important.
Bishoon cautions further, “There is the potential for conflict if you have not clearly stated who is to inherit your family home, or other items that may be of monetary or sentimental value to you. A will is more than a legal document – it is a roadmap that helps your loved ones avoid conflict and confusion, and it protects your legacy.”
This Wills Month, the results of the 2024 Sanlam Legacy Survey highlights the legacies we want to leave, and reveals some of the main reasons why so many of us don’t do our estate planning.
Key insights from the 2024 Sanlam Legacy Survey include:
- What motivates people to draft wills? Most surveyed South Africans (57%) believe that creating a will is the right thing to do; 48% felt driven to draft one to avoid family disputes; and 45% were motivated by the fact that they have children.
Bishoon says, “Heartbreak can happen when a family feuds over an estate. Without a will as a guide, conflict can quickly erupt when emotions and financial strain run high. It’s not surprising that children are a major motivator for drafting a will. As a parent, you want to know your children will be safe and cared for should something happen to you. Without a will, you have no say in who will look after them when you’re gone, or how they will be raised – the Master of the High Court will decide. You also cannot necessarily ensure their inheritance is protected should your former spouse remarry, for example. You want the least possible disruption to their lives. A will can help you accomplish that.”
- Mind the gap: The need for more accessible consumer education was highlighted by the fact that 21% of respondents said they don’t know a lot about wills. Bishoon adds, “A will is crucial at every life stage. Early on in your family life, your aim could be to protect your loved ones from your student debt. Or, later on, you could be getting a divorce. Then the risk is that if you don’t update your will, your ex-spouse could still inherit, even if you didn’t want them to.
- Biggest barriers: One of the biggest barriers to having a will was individuals not believing they own enough, with 60% of those without a will saying they could be convinced to draft one if they owned more assets. Bishoon says, “27% of those surveyed believe you need to own at least R500 000 in assets to justify having a will, whereas 14% believe you need to be worth more than R5 million. Neither of these, by the way, are true! It doesn’t matter how little material possessions you have to your name, if you are aged 18 or older, you should have a will.” Those with wills who were surveyed were more likely to be white, property owners, business owners, or have income of more than R30 000.
Bishoon adds, “We need more consumer education about what happens if you pass away without a will: The state winds up your estate according to the Intestate Succession Act – dividing your assets between surviving spouse, children, parents or siblings – which can be a lengthy, costly and impersonal process.
“If there is no life insurance and it takes a long time for inheritances to be distributed, your loved ones could come under severe financial strain. No matter how much you have, a will can help expedite the estate administration process, which could alleviate potential financial burdens on your loved ones and give them more time and space to grieve.”
- Where are wills stored? Of those with wills, 21% of people do not store them with an institution. Bishoon says, “If you have your will at home, it’s critical to keep it somewhere safe, and ensure your family knows where it is, so they can access it easily if something happens to you. Think of Aretha Franklin. When she died in August 2018, her family thought she had no will, only for several handwritten wills to be uncovered – one reportedly under a couch cushion. This caused serious conflict and her estate is yet to be settled, more than five years later.”
- Connection between leaving a legacy and having a will: Bishoon says, “51% of respondents said it is a high priority for them to build generational wealth; 72% want to leave their kids being better off than they were themselves; and 71% want to leave a legacy of financial security for their dependents; yet only 38% had drafted their wills. This shows wills are not recognised as essential tools for wealth building, whereas wills are, in fact, the foundational documents for solid estate plans that map out the transfer of wealth between generations. By securing this inter-generational wealth transfer, your will ensures that your legacy lives on and does not get lost from one generation to the next.”
- Who’s the go-to? 61% of respondents said they would trust financial advisers to draft their wills, followed by banks (54%) and big financial institutions (37%). Bishoon adds, “This shows the crucial role financial advisers can play in encouraging clients to draft their wills. A will requires two witnesses and a wet ink (pen on paper) signature to be valid. It can be a complex thing to think through, especially when it comes to questions around guardians and trustees, for example. This is where an intermediary can make a meaningful difference.”
Bishoon concludes, “A will is a way to leave a legacy of care for the long-term. We need to do more to encourage one another to do our estate planning. This means speaking about the legacies we want to leave. The Sanlam Dirtiest Word campaign showed that wills are one of the top five topics South Africans are reluctant to talk about. We’re determined to change this.
“Sanlam Legacy has the experience and expertise to help South Africans get practical with an estate plan that matches their circumstances and wishes. We want to partner with people to empower them to leave their loved ones a lasting legacy of financial confidence, security and prosperity.”
More on Wills Month
National Wills Week, introduced by The Law Society of South Africa several years ago, was created to help more South Africans get their last will and testament in order. The initiative seeks to address the alarming statistic that 7 out of 10 adult South Africans die without a valid will, leaving their loved ones vulnerable and their estates at risk. Now extended and known as Wills Month, the annual initiative continues to raise awareness and educate South Africans about the importance of drafting a will and the serious implications of passing away without one. Sanlam Legacy is committed to helping South Africans plan for their financial future and provide peace of mind for their families. Through expert estate planning and will drafting services, Sanlam Legacy offers tailored advice to ensure your will is comprehensive, legally sound and valid. Whether during Wills Month or throughout the rest of the year, Sanlam Legacy assists in navigating inheritance laws, tax implications, and asset distribution, ensuring your wishes are honoured and your legacy is protected for generations to come.
About the survey
The 2024 Sanlam Legacy Survey was conducted amongst 1 200 online respondents on the ovatoyou research platform. For details on the full sample, you are welcome to contact Amanda Reekie at ovatoyou.
