Renate Jute, CFP®, FPSA® and TEP®, FISA Regional Chairperson for Gauteng and Founder of Noble Prosperity, highlights practical estate-planning implications if a living annuity has no nominated beneficiary.
If a living annuity has no nominated beneficiary at death, its value is paid into the deceased estate and distributed via a will or intestacy rules. This triggers executor’s fees (up to 3.5% plus VAT), unlike direct beneficiary payments. However, the annuity’s capital remains exempt from estate duty under the Estate Duty Act, though income tax may apply depending on how benefits are taken. Renate emphasises careful beneficiary nomination to reduce costs and delays.
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Renate Jute is FISA Regional Councillor for Gauteng, a qualified CFP®, FPSA® and TEP®, and founder of Noble Prosperity.
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