Question:
Good day! I'm worried about my husband's death benefit, as I saw his nomination form and he chose his siblings as beneficiaries, and divided 100% to them. We were married in community of property and have two kids; my boy is 1year 9months and my daughter is 8 years old. He did not put us on his beneficiary nomination form - is there any need to contest as wife, or must I just wait to see the outcome? His siblings are all over 18 years. Secondly, it has been 8 months now since he passed away, but every time I do a follow-up with Alexander Forbes they always tell me that they are waiting for the trustees' resolution; who are the trustees, and how long does it take for them to make the resolution?
Answer:
Sammy,
You don't have reason to worry. The fund trustees have a duty to ensure that - first and foremost - your late husband's financial dependants are taken care of. This would primarily be his spouse and children. If he provided financial support to his siblings, then the trustees would also have to provide for them, but they would look at the respective needs, and other sources of income of the respective parties; certainly their claim would be subordinated to yours. If they are not financially dependant on him, and you have limited means, then they are unlikely to share in the benefit.
The Pension Funds Act gives trustees up to twelve months to conduct the relevant investigations and make their award. So although the delay is frustrating, and may cause you hardship, it is not unusual. Hopefully your wait is almost over.
