Not just a Will: The overlooked essentials of legacy planning

Have you done more than just write a Will?

We often think that legacy planning requires only drafting a Will and that’s it; not true it requires more than one document. Legacy planning is a series of intentional decisions that set out how well your family Will be provided for when you’re no longer here.

Estate planning: the bigger picture

A Will is one piece of the estate planning process. To create a plan that truly works for your family, you also need to consider:

• Liquidity: ensuring there’s cash available for debts, administration costs, estate duty, and family needs.
• Tax: structuring assets to minimise estate duty, capital gains tax, income tax, and executor’s fees.
• Legacy: shaping not just who inherits, but how they inherit, in a way that reflects your values and protects beneficiaries (for example, through trusts for children or dependants).

Beneficiary nominations: the overlooked detail

Life insurance and retirement funds are often central to legacy planning, yet their beneficiary rules work very differently.

Life cover
Proceeds from a life policy are usually paid directly to your nominated beneficiaries, outside the estate. This creates immediate liquidity, which is vital while the estate is being wound up.

There are individuals who elect to nominate their estate as the beneficiary to create liquidity within the estate itself (for example, to settle debts, cover estate duty, or provide for expenses). While this can make sense, it comes at a cost: once the proceeds fall into the estate, they become subject to estate duty and executor’s fees, which reduces the net benefit available to heirs.

Retirement funds (Section 37C of the Pension Funds Act)
Retirement benefits are not governed by your Will. You are required to nominate a beneficiary/ies, but your nomination is a guide and not a guarantee for the Trustees of the Fund.
A retirement fund death claim is governed by Section 37C of the Pension Fund Act which authorises the Trustees to ensure that your death benefit is distributed to your financial dependants. This means:

• Trustees can override your beneficiary nomination
• Benefits are distributed based on financial dependency, not just intention.
• Aligning your retirement nominations with your overall plan is essential to avoid conflict or disappointment.

A legacy that truly reflects you

Legacy planning is about more than preserving wealth. It’s about clarity, intention, and care. By reviewing your Will, you are ensuring liquidity in your estate and by updating or reviewing your beneficiary nominations - you provide your family with financial security and peace of mind.

Acting today could be the most impactful decision you ever make for those you love.