Consider your Will and Testament when Buying a Home
During your lifetime you will acquire various possessions such as a car, and a home. You may also have savings in a bank account. These possessions and amounts of money are called your assets.
You will also acquire some liabilities; this occurs when you have bought things such as furniture or a home but still owe money on it or where you have taken a loan that has to be repaid.
If you own a property you should make sure that you have a valid and up to date will, this way, should something you happen to you, you ensure that the person or persons you wanted to inherit the property do.
What is a Will and Testament?
A will is a document that you draw up while you are still alive to indicate which family or friends will benefit from any pay-out from your Estate. Your will also states who will be responsible for making sure your Estate is administered.
If you leave no instructions on how to distribute your assets after your death, it can cause conflict among members of your family. Your assets could end up going to a person who may not necessarily have been your choice and your children could be left without a home.
What are the Consequences of not having a Will?
If a person dies without a valid will, the rules of intestate succession apply. These are the rules that the state follows in terms of where the asset goes, be it a spouse, children or parents.
However this can be complicated and not as easy to apply in practice. Sometimes in case of a property, there can be a number of joint owners of a fixed asset which can be complicated and not what you intended.
When Should you Make a Will?
If you possess any assets, you should make a Will. This is to make sure that your Estate is distributed according to your wishes and instructions.
Bear in mind that your Will should also be updated/amended regularly to take into account any changes in your Estate (buying a second home) or big events in your life (such as having children).
Planning for the unforeseen can be intimidating or even upsetting, but it will give you peace of mind your property and assets will be distributed in terms of your wishes.