As South Africans embrace traditional New Year’s resolutions around improving their financial position by spending less and saving more, Old Mutual is encouraging consumers to add estate planning to their 2025 financial goals. Through its enhanced Online Wills platform, which facilitates personalised will creation and estate planning support, Old Mutual is making this, often-overlooked, aspect of personal finance more accessible than ever.
“While many of us start the year with good intentions about budgeting and saving, we tend to overlook crucial aspects of long-term financial planning,” says Hilton Michels, CEO of Old Mutual Wills. “Estate planning is often seen as complex and expensive, but this is simply not the case. ”
A valid and well-considered Will & Testament forms the cornerstone of estate planning, helping ensure your assets are distributed according to your wishes and your loved ones are properly cared for. However, Michel’s explains that estate planning extends beyond drafting a will. It involves a comprehensive approach to safeguarding your legacy, addressing aspects such as estate duty, tax obligations, liquidity for settling debts, and the provision for dependents. A holistic estate plan not only protects your assets but also offers peace of mind by minimising potential disputes and delays for your loved ones.”
Many South Africans are unaware that winding up an estate comes with significant estate administration and other costs that must be paid before any inheritance can be distributed to the named beneficiaries. Drafting a will without planning for its execution, may force loved ones to have to sell assets, potentially at a loss, to cover expenses such as executor’s fees, conveyancing fees, Master’s Office fees, and various estate taxes. “Most people don’t realise that these estate costs can significantly reduce their loved one’s inheritance, potentially impacting their long-term financial security,” explains Michels. “Without proper planning, loved ones might be forced to make difficult financial decisions at an already challenging time.”
For example, if the executor is forced to sell an asset such as the family property to cover expenses, it can destabilise the family’s financial security and well-being. Losing a home or other essential assets may leave loved ones in a vulnerable position. To safeguard families from such situations, Old Mutual has created solutions that ensure their financial security and well-being are protected.
Old Mutual’s EstateAssist offers a comprehensive solution to safeguard families from the financial burden of estate administration costs. EstateAssist indemnifies these costs, ensuring assets are protected and beneficiaries can receive their inheritance without unnecessary financial stress. By covering all major estate administration costs upfront, families are shielded from having to liquidate assets or make difficult financial decisions during this sensitive period.
“Just as we set fitness goals or career objectives for the new year, securing our family’s financial future should be a priority,” says Michels. “Our platform makes it possible to create a comprehensive estate plan from home. After recording user’s accurate information, it provides a personalised cost of death calculation and the opportunity to secure the necessary protection, all in one seamless journey.”
Old Mutual’s EstateAssist ensures that all critical estate administration costs are covered, including Executor fees, Conveyancing fees, Master’s Office fees, Testamentary trust fees and Standard administrative costs.
EstateAssist is designed to be flexible and accessible, with six levels of cover tailored to estates of all sizes. This ensures that every family can find a plan suited to their needs, offering peace of mind that their assets will remain intact and their loved ones financially secure.
Estate administration often also brings other unforeseen expenses, such as tax liabilities and ongoing living costs for loved ones. To provide a holistic solution, Old Mutual’s EstateAssist includes optional benefits that can be customised to meet specific family requirements:
• TaxAssist: Covers estate-related taxes, such as estate duty and capital gains tax, ensuring no surprises for your loved ones.
• DebtAssist: Settles outstanding debts, such as home or vehicle loans, so beneficiaries can retain critical assets.
• CashAssist: Provides liquidity to cover daily living expenses, such as groceries and medical bills, while the estate is being wound up.
• EduAssist: Secures your children’s education, covering school fees through either recurring payments or lump-sum payouts.
Our platform and EstateAssist make it easier for consumers to navigate these complex decisions. “Old Mutual simplifies the process by offering a personalised cost calculation and the option to secure the estate through the appropriate EstateAssist benefits. This supports our mission of making estate planning solutions accessible to most South Africans” Michel says.
“With EstateAssist, you can have peace of mind knowing your estate is comprehensively protected, leaving a legacy of financial security for your loved ones,” Michel concludes.
