Is this normal for a provident/retirement fund

[WollieVerstege]

What you say seems to indicate I am right then... Trustees won't look at the will?

Correct. Both the will and beneficiary nominations will be used to guide their decision, but ultimately it is the financial disposition of all legitimate claimants that will determine what is paid to whom.

Example:
My son is very career driven, and is financially independent.
My daughter has chosen to do more volunteer work around the world.
My will and beneficiary nomination forms said both gets 50/50.
Based on their relative financial positions, the trustees can award:

• 40/60
• 30/70
• 40/50/10 - to my wife even though she is not mentioned anywhere.

The beneficiaries do however have the right to reject the allocation and insist on the devision as per the will/policy contract.

 

[Splinter]

So my late wife had her retirement fund with PSG Wealth,
I was listed as the sole beneficiary and after her passing I contacted them

After filling in loads of paperwork, including getting her parents to complete forms saying they do not want to claim etc, Im now filling in forms discussing my financial situation,
Breakdown of rent/bond, Food expenses, etc..

Is this normal? I have cashed out a pension before, Which didn't include any of this.....

It's due to S37C of the Pension Funds Act. As this is now a death benefit, and not a normal retiral/withdrawal/resignation, the Fund is compelled by law to do an investigation so that the trustees can determine if there are any other beneficiaries that need financial support. Thus they do a financial needs analysis on everyone (including you) to determine what would be an equitable split of the proceeds of the death benefit.

The beneficiary form basically means squat.

If this had been a payout from a standalone death insurance policy, then the beneficiary form would have been the driving factor.

 

[rh1]

Correct. Both the will and beneficiary nominations will be used to guide their decision, but ultimately it is the financial disposition of all legitimate claimants that will determine what is paid to whom.

Example:
My son is very career driven, and is financially independent.
My daughter has chosen to do more volunteer work around the world.
My will and beneficiary nomination forms said both gets 50/50.
Based on their relative financial positions, the trustees can award:

• 40/60
• 30/70
• 40/50/10 - to my wife even though she is not mentioned anywhere.

The beneficiaries do however have the right to reject the allocation and insist on the devision as per the will/policy contract.

Ok, I think I get you, for example: the son is a druggie and the daughter is hardworking. Daughter is nominated to receive 100%, but son can claim, and as he is not working, even though parent wanted the daughter to have the money, the trustee may award the son 80% because he is more destitute.

 

[3WA]

the trustee may award the son 80% because he is more destitute.

Might alos depend on if he is your dependent. I.e., if you didn't support him in life, they might not support him in death.

 

[WollieVerstege]

Ok, I think I get you, for example: the son is a druggie and the daughter is hardworking. Daughter is nominated to receive 100%, but son can claim, and as he is not working, even though parent wanted the daughter to have the money, the trustee may award the son 80% because he is more destitute.

Not exactly, in that instance because he is effectively not able to care for himself, they might still award him money but have it put into a trust.