The cost of dying: Why 70% of South Africans leave their families in financial limbo

Estate planning remains one of the most overlooked aspects of financial planning in South Africa. Despite the critical role of Wills in ensuring a smooth transfer of wealth and protecting loved ones, many South Africans neglect to draft or update a Will.
According to the Financial Services Sector Conduct Authority, more than 70% of South Africans die without a Will every year, often leaving their families in financial turmoil. The scale of this issue is staggering: 8.7 million homeowners, 5.4 million car owners, and 5 million single mothers do not have a will in place.

“Many South Africans recognise the importance of investing, saving and even protecting their wealth through insurance, however, there are still signs of reluctance or even apathy when it comes to estate planning,” says Faeeza Khan, Senior Specialist Legal Marketing at Liberty. “Unfortunately, the absence of a Will often results in difficult decisions for the families of those who have passed and, in some cases, leaves them with the financial burden of winding up their loved one’s estate.”

The high cost of dying

Every year, billions of rands are stuck in legal limbo as a result of people dying without a will. This is due to the tremendous delays caused in winding up estates, where there is no Will. Without a will assets could end up intestate leading to disputes around children’s guardianship and who takes ownership of homes, cars and other assets.

“The financial and emotional cost of dying is profound. At a time when families should be grieving and supporting one another, many families report conflict as a loved one is dying, and experience disputes as death approaches. Taking the simple step of drafting a will with a financial planner can prevent legal complications, financial burdens, and family disputes,” says Khan.

A further complication is when minor children inherit under intestate succession (when someone dies without a will). When a minor inherits from an intestate estate, their inheritance might be managed by a trustee or guardian until the child turns 18 or 21 depending on the arrangement, or, the executor must liquidate their assets and transfer the cash to the Guardian’s Fund, which is a state held fund. This fund is a trust designed to safeguard the inheritance of minor children whose parents passed away without a will or whose will does not establish a trust to protect the child’s inheritance.

Why South Africans don’t like Wills

Khan believes there are variety of reasons for widespread apathy among South Africans towards drawing up a will:

1. Fear of confronting mortality: Superstition and deeply ingrained cultural beliefs can be a contributor, with some believing that if you talk about death, you’re inviting it into your life.
2. Family dynamics and difficult decisions: Avoiding sensitive family issues, such as inheritance disputes, blended families, extended and multigenerational families, or dependants with special needs can stop some people from having a Will.
3. Procrastination: A Will isn’t urgent until it’s too late.
4. Perceived complexity: Knowing where to start can be the first hurdle as Wills are often construed as overly complicated and legal.
5. “I don’t have enough assets”: Even modest estates can cause disputes without a Will.
6. Belief that family will ‘sort it out’: We all want to believe the best of our family, but the reality is that money and assets can sometimes bring out the worst in people.
7. Cost concerns: Some people wrongly believe that drafting a Will is exorbitantly expensive as a result of legal fees.
8. Honesty and openness: For some there are concerns that past indiscretions or matters that they would like to keep quiet will be revealed in a Will when the truth is the contents of your will are completely up to your discretion.
9. Lack of awareness and education: Many people don’t realise the importance of having a Will and assume their estate will naturally pass to their loved ones without complications.

South Africa would benefit from more awareness and education on the complications that arise as a result of not having a Will, says Khan.

“While, historically, there are a number of reasons why South Africans steer clear of estate planning it is an integral part of financial planning. Not having a Will could compromise your children’s future and give rise to unforeseen costs. Drawing up a Will can be done simply and cost effectively, and it should form part of any yearly check in conversation with your financial planner,” Khan concludes.

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– Arrive Alive (@_ArriveAlive) March 28, 2025