Why your next of kin is not your beneficiary: What happens to your money when you die

• While a next of kin may be recognised for certain administrative or family-related purposes, a beneficiary is a person or entity specifically designated to receive a benefit from an asset, policy, account, will or other arrangement.

Dianah Mureithi, an advocate.

Being listed as someone’s next of kin does not automatically mean you will inherit their money or property when they die.

That is one of the key distinctions explored in this week’s episode of She Means Business, where advocate Dianah Mureithi breaks down the often-misunderstood world of estate planning.

Mureithi explains the difference between a next of kin and a beneficiary, and why understanding the distinction is important for anyone who owns property, has savings, investments, and other assets.

While a next of kin may be recognised for certain administrative or family-related purposes, a beneficiary is a person or entity specifically designated to receive a benefit from an asset, policy, account, will or other arrangement.

The conversation also examines what effective estate planning should look like and some of the mistakes families make when preparing for what happens to their assets after death.

From failing to document wishes clearly to assuming that family members will automatically know what to do, poor planning can leave loved ones facing unnecessary disputes, delays and financial uncertainty at an already difficult time.

Mureithi also demystifies wills and trusts, addressing who should consider having them, what they can achieve and the common misconceptions surrounding these estate-planning tools.

Watch this week’s episode of She Means Business for a practical guide to planning your estate.