When we pass away, our loved ones can do without the confusion or acrimony that can arise from dying intestate or leaving an unclear will

In South Africa, if you die without a valid will, the law decides who inherits your assets. In other words, everyone has an estate plan - the question is whether it is your plan or the state's.

A properly drafted will allows you to decide who inherits, and when and how they inherit. These decisions can also have important tax implications, as who inherits which assets can affect estate duty, capital gains tax and the overall cost of winding up your estate.

Your will is therefore more than a document saying who gets what. It is an important part of your financial plan and should be professionally drafted with both the legal and financial consequences in mind. I do not recommend that you do this yourself.

Think carefully about who inherits first

Consider Kate and Kyle, who have two adult children. Their plan was that if Kyle died first, half of his investments would go to the children and the other half to Kate.

It sounds reasonable, but it can have tax consequences. Assets left to a surviving spouse can generally pass without estate duty or capital gains tax being triggered at that stage. The tax is in effect deferred...