By: Advocate Sankie Morata CFP®, CEO of Sanlam Trust
When a member of a retirement fund or group life benefit scheme passes away, and they had dependents who are still minors (under the age of 18), these children are often left the most vulnerable and financially exposed. Beneficiary funds were established to protect these children by managing and allocating death benefits securely and transparently, ensuring the funds are used for the minors’ wellbeing until they reach adulthood.
While the legal structures supporting this process are sound, the real-life realities often present complex scenarios that can be challenging to untangle. From incomplete administrative records and sensitive social or cultural dynamics, to emotional tensions and misinformation, trustees could face many challenges in trying to identify and support the rightful beneficiaries, while also facing time pressures.
The clock starts ticking the moment a fund member passes away. Not only in administrative terms, but also legally and financially. Within hours, grieving families have to make decisions that could affect minor children for the rest of their lives. It is in these emotionally charged circumstances that trustees have to carry out sensitive but critical duties to determine the rightful dependants of the deceased.

Congratulations to all the brokers who were recognised at the Santam Broker Awards 2025!
At Santam, we believe that the true measure of success lies in the strength of our connections. The Broker Awards celebrate brokers who embody this philosophy.
Here’s to many more years of evolving together
Santam is an authorised financial services provider (FSP 3416),
a licensed non-life insurer and controlling company for its group companies.
One of the biggest obstacles – Experience has taught us that the sooner the fund is notified of a member’s passing, the more accurate the information usually is. As time passes, families often receive conflicting advice or revisit their claims. This makes investigations more difficult and increases the risk of dependants being overlooked.
Getting the facts straight – Gender plays an interesting role. We have seen that when a woman passes away, the data shared is almost always complete and reliable. However, when a man passes away, we often uncover inconsistencies. For example, children born outside of a formal marriage are sometimes intentionally kept private and not disclosed.
This reluctance to share information can have upsetting consequences, for example when dependants are not mentioned at funerals or memorials, or they are left out of affidavits. Trustees must look beyond the surface narratives and know which questions to ask so that they can identify all the potential dependants.
Real-life consequences of misinformation – Take the case of an ex-wife and her two adult daughters. Her former husband passed away after spending the last 10 years of his life with a life partner who cared for him when he became seriously ill. Initially, his two daughters acknowledged his life partner. However, days later, they changed their story and started referring to her as their father’s “nurse”. Meanwhile, the life partner confirmed that she was the deceased’s long-term companion. In situations like this, trustees and investigators must verify the facts, and do so without exacerbating family tensions.
Information can change quickly. We must protect the interests of everyone involved, especially minor children. This requires empathy, professionalism, and investigative skill.
Barriers to claiming benefits – Many delays or discrepancies are not malicious at all. In some cases, mothers of minor children want nothing to do with the deceased’s family or estate. Unfortunately, this creates a situation where the child, through no fault of their own, is then denied access to the benefits they are legally entitled to. Trustees and beneficiary fund administrators must act as protectors and navigators, ensuring no child slips through the net due to disagreements or conflict among adults.
Wide range of skills required – While legal expertise and financial acumen are essential, they are not the only skills required. Trustees and investigators need specialised training in empathy, social and cultural sensitivity, and dispute management. They must ask the right questions, understand traditional structures, and deal with grieving families without inflaming tensions.
A well-trained investigator must be able to:
- Approach grieving families with sensitivity.
- Understand different cultural norms and customs.
- Prevent conflict from escalating.
- Recognise the difference between misinformation and miscommunication.
In many cases, families are not trying to be deceptive, they simply don’t know all the facts, or they’re navigating complex personal dynamics, such as blended or extended households, or estranged family members.
Risk of trustee liability – Trustees must also remain aware that mismanaging the process – overlooking affidavits, ignoring potential beneficiaries, or failing to follow up on leads – leave them running the risk of personal liability. The Pension Funds Act places significant responsibility on boards to act in the best interests of all dependants, not only those immediately visible or vocal.
This means trustees must be thorough. If there’s a possibility of an undisclosed child or dependant, it must be investigated. Colleagues, close friends, even extended family must be consulted. In a society where children may be raised by grandparents or move between relatives, the information on the surface seldomly paints the full picture.
Critical record keeping – Ultimately, the burden should not fall solely on trustees. Members themselves have a moral and practical duty to ensure their beneficiary information is accurate and up to date on their employee benefits documents.
Employees can do this discreetly, without having to explain their personal circumstances to their employer. It’s about leaving a clear record behind. Not only will this speed up the benefits process but it will also ensure fair and accurate distribution.
Educating the public – Public awareness is another major challenge. Many families don’t understand Section 37C of the Pension Funds Act. They assume benefits will automatically go to the people listed in a will or on a policy. But Section 37C requires trustees to allocate benefits based on factual dependency, not only documentation.
This knowledge gap often leads to disappointment and conflict, or worse – unclaimed benefits that remain untouched for years.
Raising awareness through public campaigns, human resources workshops, and financial education initiatives can empower individuals and communities to take action before it’s too late. Let’s not wait until tragedy strikes to do our paperwork. Let’s start preparing while we’re still alive.
The future – Beneficiary funds offer a practical, well-governed way to protect minor children from being left vulnerable and financially exposed. They offer oversight, accountability, and monthly payments structured to cover real needs – from food and school fees, to transport and healthcare.
Sanlam Trust encourages all employers, unions, and financial advisers to consider beneficiary funds as part of their employee benefit planning and estate planning. It’s not only about money. It’s about honouring the lives of those we’ve lost and giving their children the best possible future.
Compliance and care – Fund trustees must respect legal structures while navigating socially and emotionally complex real-life scenarios. It is our duty, as professionals and as citizens, to ensure that no child is forgotten, no benefit is left unclaimed, and no legacy is lost.
At Sanlam Trust, this is more than a process, it’s a calling. To serve families with compassion, uphold fiduciary duty with integrity, and build a future where every South African child, no matter their background, has the chance to live with confidence.