What happens to my investments when I die?

Most of us spend years building our investments, but far less time thinking about what happens to them when we’re no longer here.

Below are two housekeeping steps that help determine whether your investments are dealt with through your estate or paid directly to your nominated beneficiaries.

Ensuring that these steps are in place can help reduce uncertainty for your family at an already difficult time.

1. MAKE SURE YOU HAVE A WILL AND THAT IT REFLECTS HOW YOUR UNIT TRUST INVESTMENTS SHOULD BE DISTRIBUTED

Some investment accounts form part of your estate and are distributed according to your will. If you do not have a valid will, the law decides who inherits. These include SA Unit Trusts, Offshore Unit Trusts and Tax-Free Investment Accounts as well as Actively Managed Exchange-Traded Funds (AMETFs).

2. MAKE SURE YOUR NOMINATED BENEFICIARIES ARE UP TO DATE

Other investment accounts permit you to nominate beneficiaries who will receive direct payment upon death. Some nuances apply as we detail below:

• Retirement Annuities and Preservation Funds allow you to nominate a beneficiary, but fund trustees are legally required to identify all financial dependants. Your beneficiary nomination therefore acts as guidance for the trustees and is not binding.
• Living Annuities and Endowment Plans will pay your nominated beneficiaries exactly what you have allocated to them.

3. VIEW AND EDIT YOUR BENEFICIARIES, AND REGULARLY REVIEW IT (ALONG WITH YOUR WILL)

If you are a registered user of our online services, you can view or edit your beneficiaries. Simply log in, then navigate to the respective Retirement Annuity, Preservation Fund, or Living Annuity investment account blocks and scroll to the bottom. This functionality will soon be available to Endowment Plan investment accounts.

It is also worth reviewing these details on a regular basis (along with your will) or whenever your personal circumstances change, such as after marriage, divorce, the birth of a child, or the death of a nominated beneficiary.

If you need any assistance, feel free to contact one of our client service consultants or speak to your financial adviser.

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