In this article in Citywire, Renate Jute warns that failing to nominate a beneficiary on a living annuity can create major estate-planning complications.
She explains that, without a nomination, the proceeds are paid into the deceased estate and distributed according to the will or intestate succession rules. This can trigger executor’s fees of up to 3.5% plus VAT and lengthy delays before heirs receive funds.
Renate notes that while the annuity capital remains exempt from estate duty, careful beneficiary planning is essential to reduce costs and delays and ensure smoother administration for dependants.
Read here.
Renate Jute is a CFP® FPSA® TEP®, FISA councillor and founder of Noble Prosperity (Pty) Ltd
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