Annual personal estate review – time for a spring clean?

Peter Veldhuizen | Managing Director | Gillan & Veldhuizen Inc | mail me |

It is that time of year again when you are swapping out your summer wardrobes for your festive season attire. You are having a long-overdue de-clutter and booking annual check-ups for the family. While you are at it, take the opportunity for your annual personal estate review to re-evaluate your estate documents and give the administrative side of your life a thorough spring-clean too!

Our circumstances, assets and status, not to mention general terms and conditions, compliance, administration and legislation, can change significantly from one year to the next.

Having dealt with matters that could have been avoided, it is extremely important to have an annual meeting with yourself. This meeting should review and rework the administration of your personal estate and adjust the supporting documentation where needed.

Updating a will

A will is a living document and probably the most important one to revisit. The first step is to make sure your executor is still the correct person to appoint. Review your wishes and, in light of changed circumstances, make sure your assets are all accounted for.

In fact, do not mess around and attempt a do-it-yourself version. There is no shortage of advice on the importance of drafting a will and having a plan for when you die. If you have no succession plan in place, I caution against relying on free services, as these might not address all necessary matters.

Another consideration is discussing your will with your heirs or beneficiaries so that they may understand the practical implications of your decisions. Who knows, they might just have alternative suggestions that make more sense and ensure your plans will work effectively.

Updating a trust

If you have a trust set up, you need to assess your appointed trustees. Make sure your beneficiaries are correct and ensure that the assets are being managed properly.

Additionally, make sure the trust is compliant. New Trust Property Control Act regulations, for instance, demand disclosing beneficial owners. While this is not new, the rules mandate consistent updates in a specified format for any beneficiary personal-detail changes to thwart financial crimes like money laundering and terrorist financing.

Updating a life insurance

Arguably the most neglected of all documentation is life insurance policies. Often taken out when you have a child or enter the adult world, a life insurance policy is very necessary at a certain stage in your life but can become a burden.

Perhaps your children are grown up, out of the house, and self-sufficient, and a life policy is no longer the best option. It is possible that better use can be made of the monthly premium in an investment of some sort.

Updating short-term insurance policies

Your insurer or broker should facilitate an annual review to ascertain your position. However, that’s often not sufficient.

Simply accepting an annual review would be imprudent. The insurance industry is competitive by nature, and a careful review and shop-around can save you many a penny on your monthly premium. Ignoring your annual review is reckless.

We have often seen clients insuring assets that are no longer owned by them for years – it happens easily!

Updating a medical aid

Are you getting the most benefit out of your medical aid? Should you upgrade or downgrade your policy? Check your dependents and ask your medical aid for a policy review.

It is likely they can offer better premiums or have developed new products that might better suit your needs.

Updating a bank account

Check your bank account and comb through your debit orders and subscriptions. You might be surprised how many unnoticed payments are automatically going off your account.

Scrutinise your bank fees and charges and investigate if there are cost-effective alternatives. Do the math on interest charged and how the debit order dates affect any contract payments to which you might be bound.

The more you consider the consequences of ignoring your paperwork, the clearer it becomes that procrastination may be more than a thief of time. An annual personal estate review is a good de-clutter that will always leaves you with a feeling of accomplishment.