Understand the critical importance of estate planning and how it can provide peace of mind for you and your loved ones in times of grief.
My heart is shattered. On Wednesday morning, I received the devastating news that a friend I had spent time with on Saturday had unexpectedly passed away. She was young, full of life, and had her whole future ahead of her. The shock sent me into an emotional spiral, forcing me to ask myself: "What if it were me?" I have three children and a family who depend on me—what would happen to them if I were to pass away suddenly?
As a personal finance editor, I regularly come across discussions about estate planning, funeral arrangements, and the importance of a will. But it’s one thing to read about these things and another to ask yourself, "Am I prepared?" This introspection led to a difficult yet necessary conversation with my eldest child about what to do in the event of my passing, especially after a health scare last year. It’s a conversation I’ve dreaded, but one that ultimately brings peace of mind.
Losing a loved one comes with immense grief, but it also requires swift financial and legal decisions. Gerhardt Meyer, Senior Legal Specialist: Advice at PSG Wealth, emphasises that estate planning is a crucial part of your overall financial plan. “This plan sets out how you want your estate to be structured to ensure that your financial goals and dreams for your family will be achieved, even after your death.”
Key aspects of an estate plan include having a valid will that clearly outlines your wishes and making provisions for estate duty and other costs to prevent the forced sale of assets. If you have a retirement annuity, it should form part of your estate plan, even though its benefits are distributed differently upon death. Additionally, trusts can play an essential role in protecting your loved ones. A financial adviser can connect you with a fiduciary specialist who can help tailor an estate plan to your specific needs.
Yaaseen Albertyn, Product Management Head at Metropolitan, warns that the lack of pre-planning is a major reason for financial strain when it comes to funeral expenses. “When a loved one dies, families are often not in the right frame of mind to make sound financial decisions. There’s little time to compare prices or evaluate services, making it easy to overspend based on emotion.” He advises appointing a trusted friend or relative to help source quotes and compare costs to avoid unnecessary financial stress.
Although discussing funerals is uncomfortable, it’s an essential conversation. Funerals can be costly, and failing to plan can place an undue burden on those left behind. “You can prevent financial hardship for your family and still ensure a dignified send-off by having the right level of funeral cover in place,” says Albertyn. However, he stresses that it’s up to family members to use the funeral payout wisely to prevent excessive spending.
Losing someone is never easy, and the emotional weight can be overwhelming. However, by planning, you can provide your family with financial security and peace of mind. If we all take responsibility for being prepared, we can ease the burden on our loved ones and shift towards a culture of readiness in the face of life’s inevitable realities.
* Maleke is the editor of Personal Finance.
PERSONAL FINANCE