FNB Wills

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Geriatrix

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I saw on Internet Banking that FNB can manage my will for me for free but they have to act as Executor.
What are the pros and cons to this? What should I consider or be aware of?
I have to mention I'm flat out broke at the moment and I cannot afford some scum sucking shark(lawyer) to manage my will for me.
 
It's not free. They charge a nominal annual fee for safe custody of the will. The drafting etc is free of charge.

Executors take a fee based on the value of the estate when they deal with it.
 
Banks are notorious for taking ages (at least a year) to wind up your estate when they are the executors. It's really a pain for whoever you may leave behind etc. Rather don't get a bank to do it.
 
Yeah the level of detail required to wind up an estate is immense and the banks simply do not employ sufficient manpower to handle this. It can take over a year to wrap up a single smallish estate at times which is really unfair on the family members you leave behind...
 
I have a family lawyer who handles everyone's estates. I don't pay that bill so I can't tell you what it costs to be honest...
 
Some attorneys offer the same service. They will draw up a will free of charge if they are nominated executors of the estate. Executors fees are fixed at 3.5% plus VAT but can be negotiated on bigger estates. Some attorneys may charge for "peripherals" like phone calls, faxes etc so check this is all included.
 
Little bit of misinformation here.
The average time to wind up ANY estate is between 8 months and 3 years.
This is why you have life insurance, with a nominated beneficiary. This does not form part of your estate and is paid out immediately.

Should I die, my fiancee will be able to pay off the house and car and live comfortably for a long time, before the estate is even looked at.
 
OP, you need to understand what the bank means by "managing" the will. Once it is drafted, what is there to manage? All you have to do, is amend the will in the case of any major change in your life, e.g. divorce, marriage, kids, etc.
 
blunomore said:
OP, you need to understand what the bank means by "managing" the will. Once it is drafted, what is there to manage? All you have to do, is amend the will in the case of any major change in your life, e.g. divorce, marriage, kids, etc.
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I understand. I asked if it was a good idea. And if it's not what are the alternatives.
 
Geriatrix said:
I understand. I asked if it was a good idea. And if it's not what are the alternatives.
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No, it's not a good idea to let a bank "manage" your will or act as executor. They are just after the executor's fees and they have no personal interest in speeding up the winding up of the estate.

Best is to appoint a family friend or relative as executor, e.g. your spouse.
 
blunomore said:
No, it's not a good idea to let a bank "manage" your will or act as executor. They are just after the executor's fees and they have no personal interest in speeding up the winding up of the estate.

Best is to appoint a family friend or relative as executor, e.g. your spouse.
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Are you allowed to have someone named as a beneficiary as the executor? Strikes me as a bit of conflict of interest?
 
blunomore said:
No, it's not a good idea to let a bank "manage" your will or act as executor. They are just after the executor's fees and they have no personal interest in speeding up the winding up of the estate.

Best is to appoint a family friend or relative as executor, e.g. your spouse.
Click to expand...

Sorry but that is not good advice. A spouse will be going through emotional turmoil at the time and the last thing they will want to do is get caught up in wrapping up your estate. This is totally ignoring whether they will have the time or expertise to wrap it up. Inevitably they will end up hiring a lawyer to do it anyway who will then charge the executors fees.

You can always name a trusted family member as a co-executor if you want some personal involvement, although this may delay the process.

This may make for interesting reading:

http://www.iol.co.za/business/perso...-1.1020344?ot=inmsa.ArticlePrintPageLayout.ot
 
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Sinbad said:
Are you allowed to have someone named as a beneficiary as the executor? Strikes me as a bit of conflict of interest?
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Yes. A beneficiary may also act as executor. It is common for testators to make a spouse (who is also a beneficiary under the will) an executor.

However, a beneficiary may not sign the will as a witness.
 
ClintX said:
Sorry but that is not good advice. A spouse will be going through emotional turmoil at the time and the last thing they will want to do is get caught up in wrapping up your estate. This is totally ignoring whether they will have the time or expertise to wrap it up. Inevitably they will end up hiring a lawyer to do it anyway who will then charge the executors fees.
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Appoint your spouse or family as executor, it will save a lot of money.

You still appoint an attorney to liquidate the estate for you but you can bargain for a lower rate.

The executor gives the attorney a power of attorney and won't have to deal with all the paperwork.

The executor can also be a beneficiary.

Let a lawyer draft the will. It should not be more than R500. Give the original to the executor to keep.
 
ClintX said:
Sorry but that is not good advice. A spouse will be going through emotional turmoil at the time and the last thing they will want to do is get caught up in wrapping up your estate. This is totally ignoring whether they will have the time or expertise to wrap it up. Inevitably they will end up hiring a lawyer to do it anyway who will then charge the executors fees.

You can always name a trusted family member as a co-executor if you want some personal involvement, although this may delay the process.

This may make for interesting reading:

http://www.iol.co.za/business/perso...-1.1020344?ot=inmsa.ArticlePrintPageLayout.ot
Click to expand...

That is your opinion.

It is common practice for testators to appoint a spouse as executor. Not to do the actual winding up but to oversee the process.
 
blunomore said:
That is your opinion.

It is common practice for testators to appoint a spouse as executor. Not to do the actual winding up but to oversee the process.
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Indeed. And your post was your opinion. I thought that's what forums were about.
 
My tax lecturer always said to us that you should NEVER do it through a bank while you alive. She recommended a spouse or someone close to the family as executor. The main reason i remember her saying this is that the bank will take a % of the estate? They generally have a fixed % in the contracts you draw up now, but if this is done at the time of the estate being wound up etc this fee can be negotiated.
 
Freaksta said:
My tax lecturer always said to us that you should NEVER do it through a bank while you alive. She recommended a spouse or someone close to the family as executor. The main reason i remember her saying this is that the bank will take a % of the estate? They generally have a fixed % in the contracts you draw up now, but if this is done at the time of the estate being wound up etc this fee can be negotiated.
Click to expand...

Read that link earlier, it is a long article but it explains it all.
 
Freaksta said:
My tax lecturer always said to us that you should NEVER do it through a bank while you alive. She recommended a spouse or someone close to the family as executor. The main reason i remember her saying this is that the bank will take a % of the estate? They generally have a fixed % in the contracts you draw up now, but if this is done at the time of the estate being wound up etc this fee can be negotiated.
Click to expand...

Good advice.
 
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