10 things you need to know about the death claims process

Identify potential beneficiaries: Dependants (defined in point 3 below) or nominees (persons who do not qualify as dependants whom the deceased member nominated to receive the benefit).

Determine the level of dependency of the persons who qualify as dependants: This includes asking for proof of what the member paid for in respect of the person claiming financial dependency, such as bank statements, proof of medical scheme payment, or a copy of a maintenance order. Such proof also helps the Trustees determine that person’s level of dependency.

Obtain details of other benefit payouts: The Trustees consider other benefit payouts to determine to what extent they may meet the dependant’s financial needs.

Legal dependant: A person to whom the member had a legal obligation to maintain, for example, a minor child, or a former spouse with a maintenance order.

Factual dependant: A person the member maintained, even though there was no legal obligation to do so, for example, someone who lived with the member.

Spouse: This includes a person to whom the member is legally married, a customary law spouse, and a permanent life partner.

Child: Includes a major child and a stepchild.

Future dependant: Someone whom the member would have had to maintain if the member did not die, for example, a fiancé or a child who was not born yet at the date of the member’s death.

Although a person may not have been legally married to the deceased member, that person may be treated as the deceased member’s spouse. The Trustees will look at the information to see if the relationship was permanent, for example, by looking at whether they lived together and for how long, whether they shared expenses or were medical aid dependants.

Although a child qualifies as a legal dependant, the Trustees may still decide not to allocate a portion of the benefit to that child. The Trustees will look at several factors, such as each dependant’s financial needs, their ages, whether they are employed, or their chances of becoming employed, to decide on the allocation.

The benefit does not form part of the joint estate, and the death benefit will be distributed according to how the Trustees decide it should be allocated.

The benefit is meant to replace the loss of support that dependants suffer when a member dies. To achieve this, the benefit is allocated to the dependants directly. This means that the benefit will not be used to settle the estate debts, and no estate duty or executor fees will be paid on the benefit. The benefit may be paid to the estate if there are no dependants, and the Trustees allocate the benefit to a non-dependant nominee, and the estate has a shortfall. The shortfall is settled first, and the nominee will pay any remaining amount. If the member was in arrears with their maintenance obligation when they passed away, this can be claimed from the deceased member’s estate. The person entitled to maintenance cannot claim the arrears of maintenance from the fund.

Suppose a beneficiary does not want the portion of the death benefit allocated to them and renounces their right to receive the benefit. In that case, the Trustees will decide how the benefit will be reallocated.