Beware of the “Free Will” Scam
Have you ever been offered a “free” will? Typically, by a finance house or institution?
This is what is going on:
You execute the “free will” but what you don’t realize and what is not disclosed is that you have just appointed the finance house as the executor!
The consequences may be catastrophic:
Once the testator has passed on the executor CANNOT LEGALLY BE CHANGED.
The heirs FOREVER MORE deal with the finance house’s CALL CENTRE as their go-to person (in their hour of greatest need and for years to come).
Finance Houses typically have unduly time- consuming response times and can take longer than necessary to finalize the estate and any complaints will have to be addressed to that selfsame call center.
They are now free to charge the maximum executor’s fee without further negotiation the testator has passed away and can no longer influence the course of the winding up.
lf there is any fixed property they appoint THEIR valuators and service providers and charge extortionate rates against the estate. The heirs are left at the mercy of a finance house, its bureaucrats and its call center.
As part of this “free” offer they “assist you’ with insurance – without disclosing that in all probability you don’t need it at all- consider:
Where the survivor is a spouse there are NO estate taxes and thus no additional burden on the estate – no insurance is needed the estate value is smaller than R3.5 million there is NO estate duty and no additional burden on the estate – no insurance needed
Existing life policies ARE NOT dealt with through the estate but should pay out directly to the policy beneficiaries, so cash availability is not a problem.
The executor can take emergency steps to assist heirs with their short-term needs – but this requires real-life assistance -a call centre will just not do it. The insurance premiums add up to much more than the costs and should usually be avoided
The old adage “There is no free lunch” is universally true – no more so than with your “free will”.
How to avoid it:
Approach an ATTORNEY with extensive estates experience.
The cost of the will (if any) is a miniscule amount given the potential benefits of avoiding a finance house.
Contact us for expert assistance or more information.