How to provide fast access to funds after death

Question I want to invest some money that can do the following:

- Kenny Meiring

I want my spouse to have quick access to the funds should I pass away - I do not want her to have to wait till the estate has been finalised.

I do not want the investment to trigger additional interest that is taxable.

I would like the investment to be excluded from my estate.

Answer

Estates are currently taking a long time to get registered, so it makes a lot of sense to structure your investments in such a way that your spouse can have immediate access to enough funds to live on while your estate is being finalised. There are three options that you can consider.

Bank deposit in spouse’s name

An option is to donate the funds to your spouse and for her to keep these in her bank account. This will trigger tax for her on the interest earned in the account. The investment will be included in your joint estate.

Sinking fund or endowment policy