A new study conducted by Capital Legacy has revealed significant financial and emotional difficulties faced by families in South Africa long after the funeral, highlighting an urgent need for better estate planning.
For many South African families, the consequences of death, including financial and emotional aspects, continue for a long time. Relatives are forced to cope with cash shortages, delays in inheritance processing, paperwork, and disputes while grieving.
According to the new study's findings, over half of respondents experienced financial pressure, while 60% reported emotional strain affecting daily life, and 42% encountered conflicts or arguments within the family.
This data forms part of Capital Legacy's first Estate Readiness Index, published this week. This index assigned South Africans an overall readiness score of 50 out of 100. The index assesses personal preparedness, the impact of death on the household, and the complexities families face when administering an estate.
Capital Legacy noted that the results demonstrated insufficient family preparedness and that the estate administration process is often more complicated than expected. The study was based on a survey of 1000 South African residents aged 25 to 75 with a household income of at least 10,000 rand who lost a loved one in the past five years.
One of the most obvious sources of pressure was the emergence of problems in the initial months following the death. More than half of respondents reported some form of financial stress, and 66% of those affected faced a lack of cash within three months.
Families needing extra money often turned to their own resources or borrowed. Of those who found additional funds, 43% used savings, 27% borrowed from a bank or another person, 13% used a credit card, and 11% sold assets such as a vehicle or property.
Unexpected expenses extended beyond just funeral costs. Families reported needing to cover travel expenses, household maintenance, unpaid debts or taxes, medical bills, and financial support for relatives awaiting access to estate funds.
Capital Legacy CEO, Craig Harding, stated: 'The index shows that over half of respondents faced immediate financial pressure, and two-thirds experienced cash shortages within several months.'
Financial pressure can be prolonged by the time required to finalize the estate administration. More than half of respondents expected administrative procedures to take less than six months, but only 28% confirmed their experience matched this expectation. Another 28% indicated the process took between six and twelve months, 20% expected one to two years, 7% more than two years, and 17% reported the process was still ongoing.
The administrative burden often fell on the relatives themselves. Fifty-four percent stated that a family member was primarily responsible for managing, administering, or processing the estate, compared to 15% who cited an executor at a law firm, and 10% who cited a financial advisor.
One respondent described the difficulty of navigating the process while grieving. They noted: 'The most frustrating part of estate administration was overcoming complex documentation and lengthy delays while I was still mourning.'
This pressure can also negatively affect family relationships, leading to disagreements over money, property, inheritance, responsibilities, and adherence to the deceased's wishes.
Dinesh Nadesan, Managing Director of Fiduciary Services at Capital Legacy, emphasized: 'Grieving families are often forced to deal with legal and administrative processes they may encounter only once or twice in their lives. They require not only technical expertise but also guidance, empathy, and clear communication from us.'
The study also found that the deceased's loved ones had significantly better preparation for the funeral than for what followed. While 74% had funeral cost coverage, only 41% had valid wills, 40% had life insurance, and 20% had coverage for death-related legal expenses.
Ken Newport, National Inheritance Planning Manager at Capital Legacy, commented: 'Many families discover too late that funeral cost coverage and estate readiness are different things. A funeral is one event. The estate administration process can take months, or even years, depending on the complexity of the estate and whether the deceased had a valid will with clear instructions.'
Experiencing this pressure prompted many respondents to change their approach to their own affairs. The study showed that 90% took some action after losing a loved one, including discussing their wishes with family, drafting a will, arranging life insurance, or developing an estate plan.
The findings suggest that while a funeral may mark the end of one stage of loss, the financial, administrative, and emotional consequences for those left behind can continue for months and even years.