When you die you may still have funds available in your retirement annuity and/or medical aid.
Retirement Annuity (RA)
Upon your death your RA does not form a part of your estate, but instead the funds are entrusted to trustees or the executor, who distribute the money to the beneficiaries specified on the RA when you set it up.
An RA cannot be bequeathed via your will and will normally go to a person you have nominated in the RA.
However, the funds will not automatically go to the people nominated by the RA member, but will look at any dependents that the person may have had.
The management board will review the people that were dependent on you to ensure that they are not left destitute regardless of whether you were legally required to maintain them.
An RA cannot be ceded to someone or be attached for any purpose. So it will not form part of an insolvent estate and is also protected against any claims from your creditors.
Your dependents will continue to be covered as long as the medical aid is paid up. However someone will have to notify the medical aid company and ensure that the policy is taken over by someone who will be responsible for the account going forward.