Protecting what you have built
Protecting the wealth, you have created over time is just as important as creating it. In the early stages of our lives, our investment and savings goals are achieved through hard work and discipline. Once wealth is created, it should be protected. Smart planning is essential in ensuring that your assets are protected even when you are no longer around. You may have numerous investments both locally and offshore that need protecting should something happen to you. There are essentially three key steps in protecting what you have built to last beyond your lifetime.
1. Draft a will
The first step in protecting what you have built is to get a valid will in place. Should you already posses a will, it will require regular updates to ensure that all your assets are included. Your will should clearly state who your assets will be left to in the case of your death as well as nominate an executor of the estate. The executor should be an institution or someone that you trust and that has the necessary skills and knowledge to effectively perform the complex estate administration formalities and tasks. FNB offers executorship services through a team of qualified and experienced estate administrators. Although not the nicest thought, proper will planning is essential to ensure your wishes are carried out when you can no longer do so. You can draft a free will via FNB Online Banking, or you can draft a will with one of our specialists at no extra cost.
2. Develop an inventory and asset fact sheet
Developing an asset fact sheet is another important step in protecting wealth, especially if your assets and investments are in multiple geographic locations. Building a detailed spreadsheet with explanations in preparation will assist in ensuring assets are distributed correctly in the event of your death. An asset fact sheet will also assist the executor of the estate in locating all the assets of your estate. Financial institutions, account numbers, locations and certificates of ownership will all be needed by the executor to wind up your estate correctly. Details such as asset values can be left off this list as these can be identified and calculated by the executor when needed and excluding this type of information adds an element of security.
3. Communicate with loved ones
The last step in wealth protection is to let your loved ones know that you have created a will and an accompanying asset fact sheet. Discussions must be had on the location of both the will and fact sheet. Also ensure that your loved ones know who your nominated executor is and who to contact. By taking these essential steps, you ensure that the assets you have built and created over your lifetime will be protected in your preferred manner. Your family will also know what to do should something happen and be able to support themselves knowing that the correct steps have already been taken. Wealth protection is vital, and the relevant documents must be updated regularly.
