MERRY CHRISTMAS!

We are quickly approaching the end of 2020! Before this happens, the two winners of the 2020 Legatus Trust competition must still be announced.
 
This is the last edition of The Legatus Times for 2020. The names of the winners will be reflected in the January 2021 newsletter.  There will also be an announcement regarding a further competition for the next period. Keep on reading our newsletter.
 
This is the last months to earn point to contribute to your final point. Therefore, make use of these last few days to deliver all NEW signed Wills to Legatus Trust.
 
We would like to take this opportunity to thank you for your loyalty to and continued support of Legatus Trust and for making use of our fiduciary services. Be assured that everyone at Legatus Trust will always give their utmost to deliver a service of excellence to you.
 
This was an extraordinary year. At the end of it, we can only look back and be thankful for where we are today. With the holiday season approaching, we would like to wish you all the best.  We hope that you will be able to have a relaxing and blessed festive season with your loved ones.  If you are so fortunate to travel to a holiday destination, drive safely, be safe and enjoy the scenery along the way.
 
Office closure for festive season
Our offices will close for the festive season at 12h00 on Tuesday, 15 December 2020 and re-open at 08h00 on Tuesday, 5 January 2021.

DOES THE PROCEEDS OF A LIFE POLICY FORM PART OF A COP MARRIAGE JOINT ESTATE?

Read more about this in the next edition

One of the most important tasks for newlyweds is to tend to their estate planning. The estate planning will depend on what form of marriage they chose and what they want to happen with their assets. This should include the drafting and signing of a Will. But what if this marriage ends in a divorce?
 
According to Statistics SA’s latest data, released in March 2019, on divorce orders between 2016 and 2017shows an increase in divorce rates.

 
This is alarming, and the consequences of divorce takes a toll on all the parties involved. One thing that must be addressed in these circumstances, is the changing of a Will after this heart-breaking turn of events.
 
Let us look at the following case study:
 
The couple married in community of property, but the husband was a divorcé. After the marriage, the husband died without leaving a new Will. Under his previous marriage, the husband had a valid Will, which was never rescinded. His new wife, the widow, only found out about this after his death. According to the previous Will, his ex-wife was the sole heir of his estate. She approached an attorney to determine how this affected her and if she still had a right to his whole estate.
 
The main legal consideration in this matter: How long ago did the testator get a divorce? 

In the light of the above, the following questions need to be answered: 

 
The latter has dire consequences for the inheritance of the new wife at the time of death, even if the couple were married in community of property.
 
What does it mean to be married in community of property? 
 
In South Africa, it means that the surviving spouse will have a claim to 50% of the value of the joint estate. The actual value of the estate is thus reduced to 50%. The division of the estate only takes place after all the debts of the deceased estates have been settled.
 
In this specific case, the wife and deceased husband owned everything in the joint estate in equal shares. There are some exclusions, for instance donations or bequests. On the husband’s death, the joint estate is divided, and she gets 50% of the joint estate in terms of matrimonial property law. The ex-wife will inherit the amount available for distribution in terms of the Will. Thus, neither parties will get everything.
 
If the deceased signed a new Will, revoking all previous Wills, after they got married, bequeathing his whole estate to his new wife, she would have inherited his full 50% share of the joint estate, thus be the owner of everything in the estate.
 
If he died intestate (without a Will) and they had children, she would have inherited R250 000 or a child’s share of his estate, whichever is the greatest. If there were no children, she would have inherited his whole estate. If the value of the estate were R250 000 or less, she would have inherited the full amount available for distribution.

It is no secret that people love their animals. But some are more passionate about their animals than others, and their love inspire them to go to great lengths to consider their pets’ lives after they die. The childless millionaire, Leslie Ann Mandel, was such a person.
                                                                                              
She had 32 cockatiels who lived freely in an aviary on her East Hampton property. She also had a rescue dog named Frosty, and a cat named Kiki. Their wellbeing was foremost on her mind and she made special provision for them in her Will. All her birds, as well as her cat and dog, were named on the second page of her Will. She instructed that $100,000 of her $5.3 million estate be placed in a trust which was to be managed by her stepson to care for her pets for the rest of their natural lives. She left detailed instructions for the care of the cockatiels, but no specific instructions for the cat and dog.
 
Leslie Ann died in June 2015 at the age of 69, after being treated for kidney stones in hospital. Her last Will was drafted in 2005 and numerous handwritten notes led to a court case between Leslie Ann’s husband and her sister. In 2006 there were numerous places where her husband’s name was replaced with that of her sister without complying to the correct witnessing requirements according to testamentary law. Just another reminder that your clients should review their Wills regularly and that all changes are made according to the letter of the law.