New research from Capital Legacy reveals the financial and emotional toll on South African families long after the funeral, highlighting the urgent need for better estate preparedness.
Image: File photo
For many South African families, the financial and emotional consequences of a death continue long after the funeral, as relatives face cash shortages, estate delays, paperwork, and disputes while still grieving.
New research into what happens to households after a loved one dies found that more than half of respondents experienced financial pressure, while 60% reported emotional strain that affected their daily lives and 42% experienced conflict or feuds within the family.
The findings form part of Capital Legacy’s inaugural Estate Readiness Index, released this week, which gave South Africans an overall readiness score of 50 out of 100.
The index measures personal preparedness, the impact of death on the household as well as the difficulties families encounter during estate administration.
Capital Legacy said the findings showed families were underprepared and that the estate administration process was often more difficult than expected.
The research was based on a survey of 1 000 South Africans aged 25 to 75 with monthly household incomes of R10 000 or more, who had lost a loved one during the previous five years.
One of the clearest pressures emerged within the first few months after a death. More than half of respondents reported some form of financial pressure and, among those affected, 66% experienced a cash shortage within three months.
Families who needed additional money frequently turned to their own resources or debt. Of those who had to find extra money, 43% dipped into savings, 27% borrowed from a bank or another person, 13% used a credit card, and 11% sold something such as a vehicle or property.
Unexpected expenses also stretched beyond funeral costs.
Families reported needing to cover travel, household expenses, outstanding debts or taxes, medical bills, and financial support for relatives while awaiting access to funds in the deceased estate.
Capital Legacy CEO Craig Harding said: “The Index shows that more than half of respondents faced immediate financial pressure, and two-thirds suffered cash shortages within months.”
Those financial pressures can be prolonged by the time it takes to wind up an estate.
More than half of respondents expected estate administration to take less than six months, but only 28% said their experience matched that expectation.
Another 28% said it took between six and 12 months, 20% waited between one and two years, 7% waited more than two years, and 17% said the process was still ongoing.
The administrative workload also frequently fell on relatives themselves. Fifty-four percent said a family member was mainly responsible for handling the estate, administration, or paperwork, compared with 15% who said an executor at a law firm handled it and 10% who identified a financial adviser.
One survey respondent described the strain of trying to deal with the process while mourning. “The most frustrating part of administering a deceased estate was navigating the complicated paperwork and long delays while still grieving.”
This pressure can also spill over into family relationships, leading to disagreements about money, property, inheritance, responsibilities, and whether the wishes of the deceased are being respected.
Deenisha Nadesan, managing director of Fiduciary Services at Capital Legacy, said: “Bereaved families are often expected to deal with legal and administrative processes they may encounter only once or twice in their lives. Their need is not only for technical expertise, but for guidance, empathy and clear communication from us.”
The research also found that respondents’ deceased loved ones were considerably better prepared for funerals than for what followed.
While 74% had funeral cover, only 41% had valid wills, 40% had life insurance, and 20% had cover for the legal costs of dying.
“Many families discover too late that funeral cover and estate readiness are not the same thing. The funeral is one event. The estate administration process can take months, often years, depending on the complexity of the estate and whether the deceased left a valid will with clear instructions,” said Ken Newport, Capital Legacy’s national manager of succession planning.
Experiencing those pressures appeared to change how many respondents approached their own affairs.
The research found that 90% took some form of action after losing a loved one, including discussing their wishes with family, writing a will, taking out life insurance, or putting an estate plan in place.
The findings suggest that while the funeral may mark the end of one stage of loss, the financial, administrative and emotional consequences for those left behind can continue for months or even years.
Related Topics:
