PITFALLS OF INTESTACY RULES
The problems surrounding Beneficiaries determined by Intestacy Rules are :
- No Control over who to give and what percentage to be given to beneficiaries.
- No Say over the appointment of Executor, Trustee or Guardian.
- If the deceased leaves behind a spouse and children, elderly parents are excluded from the deceased estate.
- Step-children and Illegitimate children are not included in the list.
- Children from the previous marriage might be disadvantaged.
- Ex-spouse can gain access to the deceased estate as a guardian of the children.
- Couple going through separation leading to divorce is still considered husband and wife, and hence the surviving spouse is legally entitled to at least 50% of the estate.
- The next-of-kin could be the administrator or co-administrator of the estate, but might not be entitled to the estate.
- Living-in partner is excluded from the list.
- If one beneficiary is bankrupt, your estate could land up with the beneficiary’s creditor.
- If one beneficiary lacks financial discipline or maturity, you can’t stop the distribution to him. The administration cannot hold the assets in trust, and must distribute the estate to the beneficiaries after the probate formalities are completed.
- Your best friend is excluded from the list.
- You can’t leave a legacy to any organisation.
By making a Will, you can express your wishes, ranging from equitable asset distribution to honoring relationships with family members and friends, or charities. The reasons for making a Will vary from person to person. What’s yours?