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Estate planning is an essential step in safeguarding your assets and ensuring your wishes arefollowed after your death. Central to this is having a valid will, a document that provides clearinstructions as to how your estate should be distributed. If you pass away without a will yourestate will be distributed according to the laws of intestate succession, which follow a strictlegal formula that might not align with your personal preferences. The Concept of Intestate SuccessionIntestate succession refers to the statutory system that governs estate distribution when anindividual dies without a will. Under the Intestate Succession Act 81 of 1987, specific rulesdetermine who will inherit the estate based on their relationship to the deceased. In theabsence of a will, this process is intended to ensure that immediate family members and bloodrelatives are prioritised. However, it can be restrictive, as it does not allow any flexibility toaddress unique family situations, non-blood relations, or other wishes of the deceased. How is the Estate Distributed without a Will?In South Africa, the distribution of an intestate estate follows a set order of inheritance, whichprioritizes spouses and descendants. The key rules are as follows:Surviving Spouse Only: If the deceased is survived only by a spouse and has no children, thespouse inherits the entire estate.Surviving Children Only: If there are no surviving spouse, children will inherit the estate inequal shares. This applies to biological children and adopted children, but stepchildren mayonly inherit if legally adopted by the deceased.Spouse and Children: When both a spouse and children survive the deceased, the spousereceives either a “child’s share” or R250 000, whichever amount is greater. The remainingestate is then equally divided among the biological and adopted children. A “child’s share” iscalculated by dividing the estate by the number of children and the spouse.Other Blood Relatives: If there is no surviving spouse or children, the estate will go to theclosest blood relatives, including siblings, parents, or other extended family members. If theclosest living relatives are distant, the estate may be divided among them equally.No Surviving Relatives: Without surviving relatives, the estate will be held in the Guardian’Fund for up to 30 years. During this period, any unknown relatives may come forward to claimthe estate. If no legitimate heirs are identified, the estate will ultimately revert to the state. Why Having a Will is Crucial and key advantagesA will offers flexibility and legal certainty when planning the distribution of assets. It allowsindividuals to designate chosen heirs, specify who should receive particular belongings, andappoint guardians for minor children. It enables the selection of an executor to oversee theestate’s distribution, helping to minimize misunderstandings or conflicts among familymembers. In contrast, intestate succession does not account for the deceased’s personalwishes and can result in conflicts among surviving family members who may feel overlooked A testator may include a fideicommissum condition in their will where the initial beneficiaryreceives property with the requirement that it will pass to a subsequent heir after a certainperiod or upon specific conditions. For example, a parent might leave a house to a child withthe stipulation that it will eventually be inherited by the grandchild. This condition helpspreserve family assets across generations. Another advantage of a will is that it allows for the creation of a trust to manage assets forminor children until they reach a suitable age. By appointing a trustee, the testator can ensurethe inheritance is used for the children’s needs. Without such a provision, any assets inheritedby minors would likely be managed by the state’s Guardian’s Fund or a court-appointedguardian, potentially limiting access to funds and delaying distributions A testator can furthermore outline specific terms or conditions attached to an inheritance. ,testator could for example stipulate that a beneficiary may only receive their inheritance uponobtaining a university degree or reaching a certain age. These conditions must howeverremain reasonable and lawful in order to be valid. Requirements for a Valid WillFor a will to be legally valid, it must adhere to the formal requirements set out in the Wills Act7 of 1953. The testator must be 16 years or older and mentally capable of understanding thewill’s implications. The document must be in writing, signed by the testator and two competentwitnesses at the same time. When a mark, rather than a signature, is used, a Commissionerof Oaths must be present to confirm the Testator’s identity and to verify that the will belongsto the Testator. Failure to meet these requirements can result in a will being declared invalid. Challenging the Validity of a WillEven when a will exists, its validity can be disputed. Common grounds for contesting a willinclude non-compliance with the Wills Act’s formalities, fraud, forgery, or undue influence onthe testator. The courts generally try to uphold the wishes of the testator, but they may ruleagainst the will if there is sufficient evidence to prove on a balance of probabilities that it wasnot created voluntarily or does not reflect the deceased’s wishes. If a party wishes to disputethe validity of a Will, that party carries the burden of proof to support their claim. In the case of Kunz v Swart and Others 1924 AD 618 the court assessed the issue of forgery,examining whether the will represented the testator’s wishes. In Pillay and Others v Naganand Others 2001 (1) SA 410 (D), the applicants successfully contested a will’s validity, arguingthat the signature had been forged. These cases demonstrate the court’s role in protecting theintegrity of wills, ensuring they are genuine reflections of the testator’s intentions. ConclusionCreating a valid will is a powerful step toward ensuring your estate is distributed according toyour preferences. Without a will, intestate succession applies, and although it provides astructured approach to asset distribution, it is often rigid and may not reflect the deceased’sunique family dynamics or intentions. With a will in place, you can gain peace of mind knowingyour assets will be managed as you intended. Given the complexities of estate planning andthe possibility of disputes, it is advisable to seek professional assistance when drafting a will,ensuring that your hard-earned assets are preserved and passed on according

Selling Property? Here’s the Scoop on Who Pays: Transfer Duty or VAT! What is Value Added Tax?The Value – Added Tax Act No. 89 of 1991 (VAT Act) came into effect on 30 September1991, provisioning for an indirect tax, commonly referred to as Value Added Tax (VAT), tobe levied on the supply of goods and services supplied by a registered VAT vendor in thecourse and furtherance of any business carried on by such a vendor. It is important to understand that the VAT Act defines “goods” as any real right in any fixedproperty, to the exclusion of any right held under a mortgage bond/pledge of any fixedproperty. So, the disposal of property could be subjected to VAT, provided such atransaction falls within the ambit of the VAT Act. What is Transfer Duty?The Transfer Duty Act No. 40 of 1949 (TD Act) came into effect on 01 January 1950,provisioning for a tax levied on the value of a property acquired by any person. Thepurpose of this is to generate a form of income for national government as such a levy ispayable into the National Revenue Fund. Section 2 of the TD Act makes provision for transfer duty to be imposed on any propertywhich is acquired by a person by way of a transaction. Transfer duty can also be imposedon the amount by which the value of a property has been enhanced.Now… let’s delve a little deeper into the importance of knowing whether VAT orTransfer Duty is applicable to your transactionThe first step is to ascertain the status of the Transferor/Seller. Make use of this two-fold nested test question:Is the Seller/Transferor is a vendor, as defined in the VAT Act, for purposes of thetransaction? The likelihood is that VAT will be payable, however further enquiry isnecessary. Is the Seller/Transferor is a vendor, as defined in the VAT Act?How do I know who is a registered VAT vendor? Well, it’s quite easy, simply request thevendor to provide their VAT registration certificate also known as a VAT 103 or visit theSARS website @ www.sars.gov.za, on the filing page and use the VAT Vendor Searchfunction. For purposes of this transaction?Purpose is imperative here as the disposal of a vendor’s property is to be linked to hisbusiness. A vendor is considered to be someone, carrying on a business/enterprise on acontinuous/regular basis, within the Repubic or partially within the Republic, and throughthe course of this business, goods and services are supplied in exchange for aconsideration payable by the Transferee/Purchaser of those goods and services supplied. Yes, Yes, Yes!!!If this two-fold, nested test question is answered affirmatively, VAT becomes payable onthe transaction. The onus then lies on the Seller to ensure that negotiations include VAT.If the VAT levied on such a transaction is unspecified in the deed of sale, consider the VATinclusive in the price specified in the deed of sale as it is then deemed to be inclusive ofthe Purchase Price. Conveyancers and Real Estate Agents must be fastidious andexercise great caution in drawing up deeds of sales when acting on behalf of developers So! VAT does not apply to me, Does this mean that I have to pay Transfer Duty?Transfer Duty certainly becomes payable in the event that VAT is not applicable to yourtransaction. This duty is levied on the fair – market value of the property being disposed ofand is payable by the Purchaser. In practice, this amount is paid into the ConveyancersTrust Account who then pays it over to the Receiver on behalf of the purchaser. A transferduty receipt (TR) is provided to the conveyancer which serves as proof that transfer dutyis paid. Knowing whether Transfer Duty or VAT applies can make or break your property deal!Look out for Part 2 of this article where we will exolore certain VAT exemotions apolicableto Property Transfers. Download the full Property Practitioners Regulatory Authority Code of Conduct. Download

1. The Property Practitioners Act provides as one of its objects the protection of the consumer. Property Practitioners therefore have a duty to uphold and protect the interest of the consumer. A central feature of that duty is to ensure that Property Practitioners can uphold and maintain the highest standards of ethical conduct. This Code2 attempts to assist Property Practitioners in achieving that goal. While the Code should be considered a reliable and instructive guide for property practitioners, the obligations it identifies are only the minimum standards of professional conduct expected of members of the profession. Property Practitioners are encouraged to aspire to the highest standards of, integrity, honour and competence in the practice of their profession, whether or not such standards are formally addressed in this Code. The Preamble provides 3 amongst others as follows; AND WHEREAS consumers require assistance when conducting property transactions; AND WHEREAS property practitioners can play an important role in providing such assistance; AND WHEREAS it is necessary to ensure that such assistance is rendered in a professional way; AND it is necessary to regulate circumstances when such assistance is not rendered in a professional way 2. PURPOSE  The Act requires that every property practitioner should be able on request by a consumer provide the consumer with a copy of the code of conduct. The PPRA has re produced a copy of this code of conduct to enable property practitioners to comply with the requirement. 3. Applicability This Code of Conduct applies to all Property Practitioners defined under section 1 of the Property Practitioners Act. https://theppra.org.za/disciplinaries/code_of_conduct Download the full Property Practitioners Regulatory Authority Code of Conduct. Download

It is widely accepted and known that in the event of a private sale between a home owner and a purchaser, the Consumer Protection Act (CPA) does not apply as the definition of a supplier in terms of the CPA clearly requires “means a person who markets any goods or services…” , and when used as a verb “in relation to goods includes sell, rent, exchange and hire in the ordinary course of business for consideration” . Seeing that it is not in a private owner’s ordinary course of business to sell property the seller does not comply with the definition of supply or supplier and thus the CPA and all its remedies, rights and obligations do not apply in the event of private sales. Although this discussion is not about private sales, but private rentals, I respectfully differ from the school of thought that is of the opinion the CPA applies to private rentals as it is equally not a private lessor’s ordinary course of business to rent out properties if he has one rental premises that he rents out on a monthly basis and therefore the rights, obligations and remedies in terms of the CPA should not apply in these instances, but rather the Rental Housing Act 50 of 1999 as well as the Rental Housing Amendment Bill of 2013 and the  Regulations on the Rental Housing Act Unfair Practices Regulations as contained in Government Gazette 30863 of 14 March 2008. However, even in the event where the CPA is applied to private rental housing contracts and the lessee calls upon Section 14 of the CPA in cancelling the rental agreement in terms of Section 14(2)(b)(i) (bb) by way of 20 business day notice arguing that it is a fixed term agreement as prescribed in the CPA, the lessor will equally be entitled to impose a reasonable cancellation penalty due to the lessee’s cancellation as aforementioned. This is confirmed in Section 14(3)(1)(b)(i).  This reasonable cancellation penalty includes all damage that the lessor may have suffered due to the lessee’s premature cancellation and can only be determined once the damage of the lessor due to the premature cancellation has ceased (for example when a suitable alternative tenant has been found).  In closing it is my opinion that the deposit of the lessee can and should be retained as a partial limitation of the lessor’s damage but with reservation of the lessor’s rights to claim further damage against the lessee once such amount has been determined. 

Maak staat op die raad van die man wat twyfel of dit reg is: die man wat nie twyfel nie, het die saak maar van een kant af beskou. C.J. Langenhoven (Waardes en Waagmoed) Met die bruilofseisoen in volle swang, moet jy sorg dat jy tydig regsadvies inwin oor die drie huweliks-goederebedelings wat in Suid-Afrika vir die partye beskikbaar is. Dit is belangrik om ‘n voorhuwelikse kontrak te sluit voordat jy trou, anders sal jy ingevolge ons reg outomaties in gemeenskap van goed getroud wees. Dit mag heel moontlik nie die beste keuse vir jou en jou huweliksmaat wees nie. Dit is moontlik om later gesamentlik jul huweliksgoederebedeling te verander nadat die huwelik reeds gesluit is. Dit behels egter ‘n gesamentlike hofaansoek in die Hoë Hof nadat julle ook aan al jul skuldeisers skriftelik kennis gegee het. Dit is moontlik, maar dit is nie ‘n vinnige of ‘n goedkoop opsie nie. En dit is in geheel onnodig as julle voor die huwelik die nodige erns en aandag aan jul sake gee. Die drie keuses 1. Huwelik in gemeenskap van goedere: Hierdie is die standaard bedeling wat op huwelike van toepassing sal wees indien jy nie ‘n huweliksvoorwaardekontrak sluit nie. Alles wat jy besit en skuld, asook alles wat jy gedurende jou huwelik bymekaar maak, beland in die een enkele gemeenskaplike boedel. Hier is slegs ‘n paar uitsonderings. Jou huweliksmaat sal skriftelik tot sekere transaksies moet toestem. Op datum van egskeiding of dood, sal jou gemeenskaplike boedel omtrent altyd gelykop tussen die huwelikspartye verdeel word, ongeag van wat elkeen van julle tot die huwelik bygedra het. Indien een van die gades in ‘n finansiele penarie beland, is dit die gemeenskaplike boedel wat aanspreeklik gehou sal word.  Beide huweliksmaats word outomaties saam gesekwestreer en sal alles verloor ingeval van sekwestrasie. 2.  Huwelik buite gemeenskap van goedere, sonder die aanwasbedeling : Jou eie bates en jou eie laste, dit wat jy inbring in die huwelik en dit wat jy gedurende die huwelik opbou en bymekaar maak, bly joune en joune alleen.  Jy kan na vrye wil daarmee handel.  Jy sal glad nie aanspreeklik wees vir jou gade se afsonderlike skulde nie en dienooreenkomstig sal die sekwestrasie van jou gade se boedel ook nie jou boedel raak nie.  Jy sal net jou bewyse van eienaarskap aan die Trustee van die gesekwestreede boedel moet lewer en jou bates sal aan jou as die solvente huweliksmaat vrygestel word. Hierdie huweliksgoederebedeling mag dalk die regte keuse vir jou wees.  Let egter daarop dat dit ‘n risiko inhou vir die huweliksmaat wat deur voltydse tuisteskepping en deur ondersteuning van die gesin tot die huwelik bygedra het,  eerder as met uitsluitlike beroeps-en finansiele bydraes.  Sonder n eis van aanwas kan so ‘n huweliksmaat sleg aan die kortste ent trek. 3. Huwelik buite gemeenskap van goedere, met insluiting van die aanwasbedeling : Soos met die vorige huweliksgoederebedeling, bly jou bates en jou laste joune en volledig onder jou eie beheer.  Jou bates is ook beskerm teen jou huweliksmaat se skuldeisers.  Die verskil is dat by datum van egskeiding of dood, word die sogenaamde aanwas of groei van julle afsonderlike boedels bereken.  Jy en jou huweliksmaat deel dan gesamentlik in hierdie groei, met slegs enkele uitsonderings. Hierdie is vandag ‘n billike en ook die mees gewilde huweliksgoedere bedeling.  Dit is egter nie noodwendig die beste keuse vir jou spesifieke omstandighede nie,  gaan neem dus behoorlike advies. Dit laat beide van julle in die aanloop tot jul huwelik met ‘n paar belangrike besluite om te maak.  Al drie die opsies hierbo het hul eie voordele en nadele.  Hierdie uiteensetting is slegs n algemene opsomming oor die onderwerp.  Kry ‘n prokureur om ‘n gepaste huweliksvoorwaarde kontrak vir julle spesifieke situasie op te stel.  Julle is dit aan mekaar as huweliksgenote verskuldig om ingeligte besluite hieroor te neem, Hierdie kontrak moet ook voor die huwelik deur die partye onderteken word en notarieel verly word.  Dit is beslis nie ‘n proses wat julle op nommer 99 of selfs net ‘n paar dae voor die troue moet aanpak nie