Many South Africans believe that once they have a signed, witnessed will in place, their estate planning is done. But it is not.

A will is a legal document that directs how your assets in your personal estate will be distributed after your death. But a significant portion of most people’s wealth sits outside that estate entirely, for example, in retirement funds, life insurance policies, trusts, and jointly owned property. None of those assets is governed by your will. They are governed by entirely separate legal frameworks, and if those frameworks are not set up deliberately, the outcomes may be nothing like what you intended.

This article explains what a will actually covers, what it does not, and why a complete estate plan must account for all of it.

What a Will Actually Does

Under South African law, a valid will is governed by the Wills Act 7 of 1953. It sets out your wishes for the distribution of assets that form part of your deceased estate: property, cash, investments, and personal possessions held in your name.

Your executor, appointed by the Master of the High Court, administers your estate in terms of the Administration of Estates Act 66 of 1965. Estate duty may apply in terms of the Estate Duty Act 45 of 1955, and executor’s fees are charged on the gross value of the estate.

Your will is essential. But it operates on a clearly defined portion of your total wealth.

What Falls Outside Your Will

Retirement Fund Benefits

Retirement funds, including pension funds, provident funds, preservation funds, and retirement annuities, are not part of your deceased estate. They are governed by the Pension Funds Act 24 of 1956.

When you die, the trustees of the fund are legally obliged to identify and provide for your financial dependents. They are not bound by your will, nor are they required to follow your beneficiary nomination form, though that nomination informs their decision.

This means:

• Your retirement savings may not go to whom you intended
• The fund’s trustees exercise discretion, based on dependency and your nomination
• Your nominated beneficiaries receive the benefit directly. It does not pass through your estate and is not subject to executor’s fees or estate duty in most cases

Life Insurance with Named Beneficiaries

If a life insurance policy names a beneficiary directly, the proceeds are paid to that person on your death. They bypass your estate entirely.

This is governed by the Long-term Insurance Act 52 of 1998 and the terms of the policy itself. Your will cannot override a valid beneficiary nomination on a life policy.

If no beneficiary is nominated, or the nomination lapses, the proceeds fall back into your estate and are then administered in terms of your will.

Assets Held in Trust

Property or assets held in a trust do not belong to you personally. They belong to the trust. The Trust Property Control Act 57 of 1988 governs how trusts operate in South Africa.

When you die, trust assets remain in the trust and continue to be administered by the trustees in terms of the trust deed. Your will has no authority over trust assets.

Many families place property, investments, or business interests in trusts for estate planning, asset protection, or succession purposes. But the trust deed must be properly drafted. A poorly structured trust can create its own complications.

Jointly Owned Property

Property registered in joint undivided shares does not necessarily transfer through your will. The surviving co-owner retains their share. What transfers is your share only, and how that is dealt with depends on the nature of the co-ownership, the marital property regime (if applicable), and the terms of any co-ownership agreement.

Property registered in terms of the Deeds Registries Act 47 of 1937 must be formally transferred. The Matrimonial Property Act 88 of 1984 is relevant where spouses are married in or out of community of property.

Practical Implications

Failing to align your will with the rest of your estate plan can result in:

• Unintended beneficiaries receiving assets because a beneficiary nomination was never updated after a divorce or death.
• Family members being excluded because retirement fund trustees cannot trace dependents if no nomination is on file.
• Assets being taxed unnecessarily because structures were not set up to manage estate duty efficiently.
• Delays in distribution because assets flowing through the estate are frozen during the winding-up process, while those outside the estate are paid out more quickly.
• Disputes between heirs because different assets arrive at different people in different timeframes with different tax treatment.

A will alone cannot resolve these outcomes. They require active coordination across all the legal structures that hold your wealth.

Conclusion

Your will is one component of an estate plan, not the whole of it. South African law creates distinct frameworks for retirement funds, life insurance, trusts, and co-owned property – each with its own rules about who receives what, and when. A proper estate plan accounts for all of these simultaneously. Review your beneficiary nominations regularly, ensure your trust deed reflects your intentions, and take advice from a qualified professional who can assess your full picture, and not just your will.

 

While every reasonable effort is taken to ensure the accuracy and soundness of the contents of this publication, neither the writers of articles nor the publisher will bear any responsibility for the consequences of any actions based on information or recommendations contained herein. Our material is for informational purposes.