You can also listen to this podcast on iono.fm here.
JEREMY MAGGS: Many individuals procrastinate on estate planning, often until it’s too late. Discovery Life indicates that around 70% of South Africans die without a legitimate will, leading families to experience delays, expenses, and conflicts during an already difficult period.
The company has enhanced its wills, trust services, and Estate Preserver offerings, utilizing its Own What’s Yours podcast to help South Africans understand the practical steps needed to safeguard their assets and loved ones.
Let’s get straight to it. I’m currently joined by Harry Joffe, head of legal services at Discovery Life. Harry, welcome. Let’s begin with a crucial question: Why do you think so many South Africans do not have a valid will? It seems to defy common sense, doesn’t it?
HARRY JOFFE: Indeed, Jeremy, people often don’t want to face the reality of their mortality and the consequences for their heirs.
Interestingly, it isn’t just one demographic; it’s a widespread issue across all sectors of society.
This situation is not uncommon—many avoid acknowledging their own mortality.
JEREMY MAGGS: It’s interesting you brought up the director because there’s a prevalent myth that estate planning is solely for the affluent. The truth is, anyone with assets or dependents should prioritize this issue sooner rather than later, correct?
HARRY JOFFE: Absolutely, Jeremy. We frequently meet younger clients who believe that because their home is mortgaged and their car is financed, they don’t see the need for a will.
We remind them that they have minor children—who would care for them if anything happened to them and their spouse? Do they have a trust in place to safeguard the assets left for those children?
Everyone has some form of assets that require protection when they pass away.
Even someone who is single and without children likely wishes for their assets to be distributed according to their wishes instead of letting the [Intestate Succession] Act determine how their assets are allocated. Ultimately, it’s about controlling what happens to your assets posthumously.
JEREMY MAGGS: Is the biggest misconception about estate planning that people don’t realize they possess assets, no matter how small?
HARRY JOFFE: Indeed, Jeremy, and there’s also a widespread misunderstanding regarding the consequences of dying without a valid will.
When someone passes without a valid will, the Intestate Succession Act activates, establishing a hierarchy of inheritance. This could result in unexpected scenarios where a distant sibling receives your assets, which may not have been your intention. Or, in the absence of siblings, close relatives might inherit, something many people simply don’t know about.
Even those who are single and lack dependents may wish to bequeath their assets to charities or even pets, necessitating trust arrangements for their care.
Everyone has the right to decide who receives what after their death.
JEREMY MAGGS: What would you say is the most common mistake that can render a will invalid or difficult to enforce?
HARRY JOFFE: Excellent question, Jeremy. Numerous common pitfalls exist. The most prominent issue we face is that wills are frequently not signed or witnessed correctly.
The Wills Act is clear, albeit somewhat outdated, regarding what constitutes a valid will. It must be in writing, signed in what we call wet ink.
No digital signatures or electronic wills are permissible. It must be an original paper document with the testator’s signature, witnessed by two people present at the signing.
Many court cases reveal wills that do not meet these criteria, thereby invalidating them—the most significant error in our view.
We regularly verify the validity of signatures when clients submit their wills for storage and find that about 10% need to re-sign their wills correctly.
This technicality under the Wills Act is a common source of confusion for many clients.
JEREMY MAGGS: How often should someone review or update their will?
HARRY JOFFE: That’s an insightful question, Jeremy. Some older clients want to modify their wills every few months due to family disputes—which is likely excessive.
We recommend updating a will after significant life events such as marriage, divorce, birth of children or grandchildren, relocation, and other major milestones.
JEREMY MAGGS: I understand the necessity for a wet signature, but as technology progresses, do you think there’s a need for a novel approach for assets such as cryptocurrency, online accounts, and digital records?
HARRY JOFFE: Absolutely, Jeremy. Cryptocurrencies present unique challenges due to their passwords and keys, complicating heirs’ access to these accounts.
It’s vital to mention cryptocurrency in the will, but including passwords directly in the document isn’t wise.
A secure method for conveying passwords needs to be established.
One client told me he intends to split the password into two parts between his children, who do not communicate, thus compelling them to resolve their issues to access his crypto. It’s a complex situation.
JEREMY MAGGS: A posthumous effort at reconciliation—fascinating. Lastly, how do Discovery’s enhanced wills and trust services and Estate Preserver simplify this often complex process?
HARRY JOFFE: We offer multiple avenues. Most of our clients with straightforward estates can collaborate with testamentary specialists who can efficiently draft their wills through our system.
For clients with more complicated situations—like offshore assets, cryptocurrencies, or unique asset types—we connect them with tailored will solutions through a dedicated law firm.
Moreover, our Estate Preserver product addresses significant costs related to death. Executor fees, testamentary trustee fees for establishing a testamentary trust, and conveyancing fees can significantly deplete an estate’s finances.
This product shields clients from those costs. We employ specific methods to calculate the necessary expenses to ensure clients can afford professional executors, trustees, and legal support, all covered by our product.
JEREMY MAGGS: Thank you, Harry Joffe, head of legal services at Discovery Life. For more details, check out Discovery’s Own What’s Yours podcast online today.
Brought to you by Discovery Life.
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