Mabuza case raises questions about living annuities

THE legal dispute involving the pension assets of the late former Deputy President David Mabuza highlights the fact that there are important structural and legal differences between financial products, where certain rules come into effect on death.

- 

THE legal battle surrounding the late former deputy president David Mabuza's living annuity raises critical questions about the distinction between financial products and their implications for beneficiaries. This article explores the complexities of living annuities and the potential impact of the court's decision. | GCIS

It’s vital that you are fully aware of these rules when choosing a certain type of product. It’s also important to know which assets or products fall within your estate and are therefore governed by your will, and which ones fall outside your estate and over which your will has no say.

At the centre of the dispute is R44.7 million in Mabuza’s living annuity. The disbursement of the proceeds of the annuity to Mabuza’s widow, Nonhlanhla Mnisi, was suspended by the Mpumalanga High Court following an application by a customary wife of Mabuza’s, Emunah Silinda, and her daughter Tamara, who argued for the money to be frozen until Mabuza’s dependants could be located and their claims considered.

This week, Alexforbes, the provider of Mabuza’s living annuity, and against which the temporary injunction was issued, published a statement clarifying the law governing living annuities and explaining its position.