No guarantee that your nominated beneficiary will get your money when you die
Did you know that the Trustees of retirement funds don’t have to pay the money to the nominated beneficiaries?
The Money Show's Bruce Whitfield refers to a case where a relative died and left assets as well as retirement annuities to his children.
One of the companies paid out - and the kids got their money 50/50.
But the other did not - it apportioned four per cent to the daughter and 96 per cent to the woman who had for four years been living with the deceased at the time.
It's assumed she had petitioned, and the trustees agreed, even though the children were named beneficiaries.
Warren Ingram, financial advisor explains.
It is actually much more normal than we think...Warren Ingram, wealth planner
Twenty years later some arbitrary people you've never met in your life... are going to have to decide whether they're going to follow your wishes or give your money to somebody else sounds outrageous...but there is a whole law around it and it's called the Pension Funds act.Warren Ingram, wealth planner
The obligation is on trustees to make sure they are actually looking after the person who died's dependants... it's quite clear in the law, that could mean you disregard the wishes of the retirement fund member.Warren Ingram, wealth planner
Listen to the interview below.
Get the 10 most-read articles of the week from Bruce Whitfield’s The Money Show, emailed to you every Friday morning.
Need the inspiration to save? The Money Show’s Bruce Whitfield interviews “Supersaver Julia” at around 7:15 pm tonight.Read More
Personal financial adviser Warren Ingram says active fund managers in South Africa have had a terrible time.Read More
Warren Ingram, wealth creator, answers listeners' questions about safe investing in anxious times.Read More
What is the concept of "market timing" and how can it help investors?Read More
The Covid-19 pandemic and the economic destruction in its wake has left some of us wondering if we'll ever be able to retire.Read More
Personal finance expert Warren Ingram shares his concerns and offers a few pointers.Read More
Personal finance guru Warren Ingram on why you should consider this risk-free investment, especially if you live off interest.Read More
Personal finance expert Warren Ingram has advice on how to survive – or even thrive – amidst the Covid-19 outbreak.Read More
Personal Finance expert Maya Fischer-French on the pros/cons of dipping into credit insurance vs opting for a debt relief holiday.Read More
Warren Ingram, wealth planner, has sensible advice for investors in gloomy times.Read More