Property and the inevitable: planning for the end
Nothing is certain but death and taxes; and property sits at the heart of both. When a homeowner dies, surviving loved ones often find themselves navigating an emotionally difficult and legally complex process. With the right planning, though, this process can be made significantly smoother.
“Structuring your estate smartly, or at least having a will in place, will spare those grieving your passing further hardship, both emotional and financial,” says Renier Kriek, Managing Director at Sentinel Homes.
Estate planning may sound like something only the wealthy need to consider, but anyone who owns a home should take it seriously. Your decisions today will shape your family’s tomorrow.
Property ownership: more than just a name on the deed
At the centre of estate planning is the question of ownership. Who holds the title to the property—and how? It’s a detail that carries legal weight when the homeowner dies.
Some property owners opt for structures that remove direct ownership altogether, placing assets in a trust or company. This is often done for tax efficiency, asset protection, or to ensure smooth succession, particularly in cases involving minor dependents or business risks.
However, Kriek cautions, “Which structure is best suited to an individual’s needs must be determined with the help of a trusted estate planner or financial manager.” For most people, simpler strategies guided by professional advice will offer the right balance of control and protection.
Marriage and property: understanding the legal impact
Once ownership structures are clear, another important factor comes into play: marital status. In South Africa, your marital regime; whether in community of property, out of community with or without accrual will significantly influence how your estate is divided.
“Each marriage model will affect the distribution of an estate differently,” Kriek explains. For example, a spouse married in community of property automatically owns half of the couple’s shared estate. But for those married out of community without accrual, only individually owned assets are considered.
These differences can have life-changing consequences for surviving partners, especially if no clear will is in place.
The power of a will in property succession
Without a valid will, the law steps in. The Intestate Succession Act outlines how estates are to be divided but the outcomes can be surprising and sometimes devastating.
Kriek points out that, under these rules, a surviving spouse may be forced to share an estate equally with children, potentially losing the family home in the process. “The marriage model will affect how the will should be structured,” he says, reinforcing that a well-crafted will ensures clarity and control.
Drafting a will with professional guidance allows property owners to allocate their assets according to their true wishes, protecting both their legacy and their loved ones.
Property held in trusts and companies: a different path
For those looking to go a step further, setting up a trust or company to hold property can provide added layers of protection and flexibility. These entities continue after death, meaning the property doesn’t become part of the personal estate and therefore isn’t subject to estate duties or potential creditor claims.
“Dying is of no consequence, if one’s dependents are the ultimate beneficial owners of the entity,” Kriek explains.
However, these structures come with setup and maintenance costs, making them more suitable for individuals with substantial assets or specific succession needs. A trust or company is not a universal solution; it’s a tool that must be used with purpose and professional insight.
When property ownership meets real-world costs
Even the best planning, however, can be undone by affordability. Surviving family members may struggle to keep a property if they can’t afford the bond repayments, rates, levies, or the administrative costs of managing a trust or company.
This is where insurance becomes a vital piece of the estate planning puzzle. Life cover or mortgage protection can provide a financial cushion that allows heirs to retain the property, instead of selling it under pressure.
“By following this rough guide and using a properly qualified and licensed financial planner, you will allow your loved ones to continue enjoying the life you worked so hard to provide them with,” says Kriek.
Planning with purpose
Property is more than just land and walls; it’s security, legacy, and often the most valuable asset in an estate. Without thoughtful planning, it can also become a burden.
From understanding marital regimes and wills to weighing the benefits of trusts and tackling the question of affordability, every decision made in life affects what happens after it. Planning today ensures dignity, clarity, and continuity for the people left behind.
