Estate planning isn’t only about what happens to your assets when you pass away. It is also about what happens to the people you leave behind. 

Having a will is only the beginning. Here are three more factors many people forget about when planning their estate:

1. The financial impact

Research shows that among those who felt financial pressure following a death, 66% experienced a cash shortage within just three months.

Life, unfortunately, doesn’t stop while an estate is being administered. Bond or rental payments are still due. School fees must be paid. Groceries need to be bought. Debit orders continue being deducted. And, in many cases, the person who died may have been responsible for some or most of these expenses.

This is why estate readiness needs to extend beyond simply having a will.

Understanding the unavoidable fees and costs associated with dying, how much money will be available, and whether the household can continue meeting its financial commitments while the estate is being administered can make a big difference to the people left behind.

2. Underestimating how long estates can take

A survey showed that more than half of the respondents expected estate administration to take less than six months. Only 28% actually experienced this, according to the Capital Legacy Estate Readiness Index™.

Estate administration involves much more than reading a will and distributing assets. It typically includes reporting to the Master of the High Court, identifying and valuing assets, dealing with creditors, filing tax returns, transferring property, making investment decisions, and communicating with heirs and beneficiaries.

Knowing what lies ahead, having the right information available and working with professionals who deal with deceased estates every day can make complex processes a lot easier to navigate.

3. Estate planning requires communication

Consider these questions while you are planning:

• Does your family know where your will is and can they access it? 
• Do they know who to contact if something happens to you? 
• Have you made your wishes clear? 
• Do they know what insurance policies, investments and bank accounts you have? 
• Do they know where your important documents are kept? 
• If you have minor children, have you considered who should care for them and how their inheritance should be protected?

These can be difficult conversations. But having them while you can is far easier than leaving your family to figure out the answers.

Content by Capital Legacy.

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