Page 20 - Bespoke EPG 2017 Digital

Assurance policies and the Will

■■ If there are beneficiary arrangements stipulated in life policies, retirement
annuities, pension or provident funds, the proceeds will be paid outside of
the estate.

■■ The estate planner cannot change a policy beneficiary nomination in his Will.

■■ Although not included in the Will, each of these instruments (RA policies, life
assurance policies, and trust deeds), although operating independently of
each other, should be reviewed by the estate planner – to ensure that they all
tie up with each other, and to ensure that the policy and fund nominations
are intact and tie in with his intentions and estate planning goals.

Important points to bear in mind:

■■ A Last Will and Testament only deals with property in deceased’s name at the
time of his death.

■■ In regard to business interests, an association agreement between members
of a Close Corporation, or a shareholder’s agreement in regard to a private
company may prescribe how a deceased’s interest should be dealt with.

■■ When a testator is married in community of property, he must remember that
it is only half of joint estate that he is able to bequeath in terms of his Last
Will and Testament. The other half belongs to spouse in consequence of the
marriage.

■■ Trust assets do not fall within the testator’s estate at death. Trust assets are
dealt with in terms of the trust deed. Estate planners should not mistakenly
believe that an asset held and owned in a discretionary trust will vest in
beneficiaries upon the trust founder’s death.

■■ A badly worded Last Will and Testament may lead to unintended
consequences, and even the disinheritance of a loved one that the testator
did not intend to disinherit.

■■ Careful consideration of all the principles and legal implications should be
exercised by the estate planner and discussed with a professional adviser
before taking any course of action.

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