Lana Visser | 16 September 2025
Lana Visser-Galant is aan independent financial adviser who holds the Certified Financial Planner accreditation at Fiscal Private Clients.
September marks Wills Month and is a timely reminder to review your estate planning and 
ensure your wishes are clearly documented and can be executed efficiently.
Beyond drafting a will, there are several strategic tools that can help facilitate the smooth transfer of wealth, reduce administrative delays, and provide financial security to your loved ones.
Endowments (or life wrappers) are often overlooked in estate planning, yet they offer compelling benefits upon death. These investment vehicles are structured to pay out to nominated beneficiaries, bypassing the estate and avoiding any possible estate administration delays. This means:
• Quicker access to funds: as funds are paid directly to the beneficiaries, this can be 
crucial for covering immediate expenses. Provided the necessary paperwork is completed, an endowment death claim process is generally completed within four to six weeks.
• Executor fee savings: as the proceeds do not form part of the deceased estate when a beneficiary is nominated, there is no need for the executor to deal with these funds, avoiding an executor’s fee. Note that the endowment still forms part of your estate for estate duty purposes.
• Tax savings: an endowment can be transferred into the name of the nominated beneficiary and does not need to be paid out in cash. As the endowment is a policy and therefore held by the life insurance provider, no capital gains tax (CGT) is incurred upon this transfer. This assists in reducing the CGT liability within your estate and defers the liability for your beneficiary to as and when funds are withdrawn.
Endowments can also be tailored to suit long-term financial goals, making them a versatile tool for legacy planning.
Life cover provides a lump sum payout upon death. This can be a vital source of liquidity, especially when estate assets are tied up in property or business interests.
Life cover can also be offered through your employer as group risk benefits, but it is important to establish if this cover is approved or unapproved, as approved life cover forms part of your retirement funds benefits and will be subject to a different death claim process (Section 37C).
Life cover benefits are usually paid out faster than estate distributions. It is important, however, to ensure that a beneficiary is nominated. If not, the proceeds will be paid to your estate. Ensuring your life cover is up to date and that your beneficiaries are correctly listed can make a significant difference in the financial wellbeing of your dependents.
If you have a dependent with a disability or special needs, a special trust is an essential estate planning tool, especially if setup while you are still alive. Doing so will avoid the need to wait for the Masters office in setting up a testamentary trust. These trusts are specifically designed to:
• 
Safeguard the financial future of dependents: for loved ones who may not be able to manage their own affairs, you can entrust their financial affairs to trustees of your choosing who will do so on their behalf. It is generally recommended to appoint a professional trustee to ensure that the necessary fiduciary duties are fulfilled, along with two trusted individuals who will have your dependent’s best interests at heart.
• Provide tax benefits: special trusts are taxed at individual rates rather than the higher trust rates of 45 percent. The individual tax exclusions and exemptions, such as the annual capital gains tax and primary residence exclusions as well as the interest exemption, also applies.
• Ensure continuity of care: with trustees managing the assets in the best interests of the beneficiary, your loved one can continue to be cared for.
Establishing a special trust requires careful planning and legal guidance, but the long-term benefits for your loved one are invaluable.
Effective estate planning goes beyond drafting a will. It’s about ensuring your wealth is transferred in a way that is timely, tax-efficient, and aligned with your goals.
Whether it’s through endowments, life cover, or special trusts, these tools can help you leave a legacy of financial security and care. Speaking to your financial planner, with the assistance of a legal professional, can assist in ensuring this is achieved.
