Beneficiaries and Nominations

I'm not sure how to think about the following:
Hubby & Missus married ANC with accrual for 23 years, start-up value nil for both. Hubby's estate exceeds Missus'estate by R 4.2 million, so R4.2 mill gets split at her death. She has a R 1.2 mill claim against hubby's estate. Will the executor charge fees on the accrual claim?

For a more comprehensive presentation from Crest please go to http://www.cresttrust.co.za/media/10290/nominations_and_cessions.pdf

Forum Admin wrote:

Thanks Bart,
By the way I am battling finding relavent legislation to answer one of my CFP Pers Fin Planning Assignment questions, the question revolved around a nominated beneficiary in the will being given the proceeds on a life policy (Lets say to a daughter) and the nominated beneficiary on the policy contract being somebody else (Lets say a wife). What would happen in the event of the life assured's death? (Life assured = policy owner in this case)
I have established that the life company would pay the beneficiary directly, in terms of the policy contract. This would be correct because in terms of contract law the life company has to fulfill their contractual obligations with the policyowner. I have found 2 cases where this was tested.
Do you know any other places I can search that would verify this answer?
Thanks for your help.
Mauro

Hi Mauro

Sorry for the delay in answering your query. I trust that you can still benefit from it.

The two cases that you are referring to are probably Wolmarans v du Plessis 1991 and Hees v Southern Life 2000.

You may want to look up chapter 18 of Life Insurance in South Africa – a Compendium by PM Nienaber and MFB Reinecke regarding the revocation of the nomination of a beneficiary on a policy. They also refer to a 2009 SA Mercantile Law Journal (par 58) where it is suggested that the tribunal required to make the ultimate decision, should in principal favour the true intention of the policyholder above the prescribed formality. In the event of competing claims the insurer would be entitled to withhold payment and use available procedural measures pending the resolution of any dispute by the appropriate tribunal, be it a court or ombudsman’s office.

But, I think, the most important starting point is certainly the terms and conditions set out in the policy contract. If it is a (contractual) requirement that all revocations of beneficiary nominations be done in writing to the insurer, this I the only way it can be done.

Kind regards

IAN BRINK                                                  

 
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Thanks Bart,
By the way I am battling finding relavent legislation to answer one of my CFP Pers Fin Planning Assignment questions, the question revolved around a nominated beneficiary in the will being given the proceeds on a life policy (Lets say to a daughter) and the nominated beneficiary on the policy contract being somebody else (Lets say a wife). What would happen in the event of the life assured's death? (Life assured = policy owner in this case)
I have established that the life company would pay the beneficiary directly, in terms of the policy contract. This would be correct because in terms of contract law the life company has to fulfill their contractual obligations with the policyowner. I have found 2 cases where this was tested.
Do you know any other places I can search that would verify this answer?
Thanks for your help.
Mauro