A fiduciary-first approach to estate planning
A fiduciary-first approach to financial planning is ultimately about putting people first. It means acting in the best interest of the client or beneficiary, with care, accountability and integrity, specifically with an eye to the long term. This is the principle at the heart of fiduciary services, where one party is legally and ethically responsible for managing assets or making decisions on behalf of another. Fiduciary services extend across several key areas, including:
Trustee services – Ensuring trust assets are responsibly managed and aligned with the founder’s intentions.
Estate planning and administration – Helping clients structure their estates while administering them with efficiency and empathy.
Executorship – Overseeing deceased estate administration with efficiency, professionalism and empathy.
Retirement fund death claim services – Supporting beneficiaries during the claims process with fairness and care.
Investment oversight – Making prudent financial decisions to safeguard and grow entrusted assets.
Sanlam Trust CEO, Advocate Sankie Morata CFP, adds, “Fiduciary Companies have a legal and ethical duty to act in the best interests of their clients. That includes being loyal, honest, acting with care, and being prudent at every step.”
‘Fiduciary first’ starts with a will
Anecdotally, we know that many South Africans want to leave generational wealth as an inheritance for their dependents. In our country, a significant proportion of the population wants to make sure that they can transfer from one generation to the next the assets they have worked hard to earn and own. The latest Sanlam Legacy Wills Survey showed that, out of 1,200 people surveyed online, 72% want to leave their kids better off than they were and 71% want to leave a legacy of financial security.
Sanlam Trust offers holistic estate planning services for a very broad range of clients with varying personal circumstances.
“We believe that a will is the cornerstone of fiduciary services. Having a valid, up-to-date will can reduce the time it takes to wind up a deceased estate and bring clarity and closure, reducing unnecessary stress for loved ones left behind.
“The consequences of dying without a will (intestate) cannot be overemphasised. If you pass away without a valid will, everything you own will be administered by a company or attorney who don’t know you, and you would not have chosen. Your assets could land up with the wrong people because the Intestate Succession Act regulates how much the surviving spouse and children etc. can inherit and this ‘formula’ could result in unintended people benefiting from your estate, while others could be left in the lurch.
“By not getting your will done, you’re forfeiting the opportunity to be in control of your legacy. If you are an intermediary engaging with clients – it’s important to teach them how to create wealth. Yes, we talk about the need for funeral cover, life insurance, and dread disease benefits, but we must also teach clients how to protect the wealth they have built by making sure it doesn’t get liquidated or go to the wrong people. You’re resting in peace, but you leave the world in chaos – that’s no way to go!” Morata cautions.
Will you? Start with the big picture
Before putting pen to paper, think about what you want to achieve, who must be taken care of, and consider personal and financial realities. Once these have been mapped, you can begin to put together a will and estate plan that supports these wishes, clearly, confidently, and with purpose.
There are five crucial questions to consider:
1. Who should inherit, and why?
Today’s family structures are complex and nowhere is this more true than in South Africa! Our home lives are shaped by divorce, remarriage, blended families, extended family and more. Without an estate plan, unintended beneficiaries may benefit, and disputes could arise. Making your wishes and intentions clear in your will helps reduce the risk of future conflict.
2. Are there minor children?
If your children are under 18, their inheritance may be placed in the Master’s Guardian Fund unless you create a testamentary trust in your will. It’s also important to nominate people you trust as preferred guardians who will raise your children with care and stability, should the unthinkable happen.
3. What do I own, and owe?
While most people want to leave a legacy, unplanned debt can drastically reduce what remains of your estate. If your liabilities (like outstanding debts and taxes) aren’t accounted for, your loved ones could be forced to sell property or valuable assets to settle what’s owed, adding unwelcome financial pressures at an emotionally difficult time.
4. Who will carry out my final wishes?
Appointing an executor isn’t a formality, it’s one of the most important decisions you’ll ever make. This person or company will handle the administration of your estate, from paperwork to asset distribution, and would need to work closely with your family for many months. Choose someone professional, reliable, and empathetic, ideally an expert in this arena. Contrary to popular belief, it is not a good idea to appoint a family member or friend who is a lawyer, or even the family lawyer, as your executor. Because taking on the role of executor requires more than legal knowledge – it requires financial, tax and business acumen, plus communication and negotiation skills, and more.
5. What costs will my estate need to cover?
Winding up an estate comes with significant and often unexpected costs: Executor fees, conveyance attorney fees, trust setup and trustee fees. The total could run into hundreds of thousands of rands. If your estate isn’t prepared for these costs, it will eat into the inheritance you are able to leave behind for your loved ones.
A well-structured will gives clarity, direction, and peace of mind to the people you care about most.
“At Sanlam Trust, we believe in empowering families to live with confidence and dignity, even in the most difficult times. That’s why we’re committed to helping clients secure their legacies through thoughtful, proactive estate planning.
“In every fiduciary role, whether we’re administering an estate, setting up a trust for a child’s future, or helping a family navigate their next steps, we act with care, diligence, and integrity on behalf of those we serve,” concludes Morata.
The Sanlam Legacy Plan offers a forward-thinking solution that integrates your will with insurance to cover and indemnify your estate’s legal fees and other immediate expenses, avoiding delays or financial strain on your loved ones. With this plan, the will is professionally drafted, and stored securely, providing peace of mind that final wishes will be carried out and loved ones supported when it matters most.