South Africans appear to be better prepared for the immediate costs associated with a funeral than for some of the financial and administrative realities that follow a death, according to research commissioned by Capital Legacy.
The inaugural Capital Legacy Estate Readiness Index produced an overall score of 50 out of 100. The underlying survey findings point to financial pressure, difficulties with estate administration, and the practical demands placed on families after a death.
The Index is made up of three Health Scores: Personal Preparedness, at 48 out of 100; Household Impact, at 51; and Process Friction, at 52. Capital Legacy says each score draws on a range of survey indicators, with its practical experience used to determine which factors have the greatest influence on each aspect of estate readiness and how they should be weighted. The three Health Scores are then weighted according to their relative influence on the overall score.
For financial advisers, the findings highlight a range of issues that can form part of the estate-planning conversation, from immediate access to cash and the likely complexity of an estate to provision for dependants and ensuring that important information can be found when it is needed.
Although 74% of respondents said their deceased loved one had funeral cover, only 41% said the person had a valid will, and 40% said the person had life insurance. The question allowed respondents to select multiple options, so these figures are not mutually exclusive.
The survey was conducted by ovatoyou among 1 000 South Africans aged 25 to 75 who had lost a loved one during the preceding five years and whose households earned at least R10 000 a month.
The Index itself is calculated solely from the survey of 1 000 South Africans. Capital Legacy says its separate data from 1 761 deceased estates opened during 2025, together with publicly available information, provides additional context but does not contribute to the numerical Index or the three Health Scores.
Liquidity can become an immediate issue
One of the clearest findings concerns what happens financially in the period immediately following a death.
More than half of respondents experienced some form of financial pressure after a death in the family, while 28% experienced little or no financial pressure. Among those whose reported pressure was above the survey’s low-pressure threshold, 66% encountered a cash shortage within three months.
Among respondents who had to find additional money, 43% dipped into savings, 27% borrowed from a bank or friend, 13% used a credit card, and 11% sold an asset such as a car or property.
The financial pressure was not limited to the costs associated directly with the death. Almost a third of respondents said they cut back on spending or their lifestyle, while 19% reported losing a secondary source of income and 16% losing the main source of income.
Among unexpected or higher-than-expected expenses identified by respondents, funeral costs were cited by 52%. Other expenses included financial support for family members at 36%, travel and transport at 30%, outstanding debts or taxes at 27%, and legal or estate-administration costs and death-related medical expenses, both at 25%.
Craig Baker, executive head of sales, distribution and customers at Capital Legacy, said advisers should ask whether a client’s family would have access to sufficient cash if the client died. This means considering immediate household expenses and debt commitments, as well as funeral, estate-administration, and other costs that may arise before funds from the estate become available.
“Having wealth on paper does not necessarily mean having cash available when a family needs it most,” Baker said.
Expectations about estate administration matter
The survey also found a substantial difference between how long respondents expected estate administration to take and how long they said it actually took.
Fifty-two percent expected the process to take less than six months, but only 28% said that had been their experience. A further 20% reported that administration took between six and 12 months, 7% said it took between one and two years, and 17% said it took more than two years. Another 28% said the process was still ongoing.
The survey did not ask respondents whose estates were still ongoing how long they had been under administration. Because respondents could have experienced a death at any point during the preceding five years, the 28% figure cannot, on its own, be treated as evidence that those estates had experienced excessive delays.
The difference between expectations and reported experience provides useful context for advisers. Baker said unhappiness can arise when families plan around how long they expect the process to take. Advisers can help clients to develop more realistic expectations by explaining that estate administration involves considerably more than reading a will and distributing assets.
Depending on the estate, this can include gathering the information required to report the estate to the Master of the High Court, identifying and valuing assets and business interests, dealing with creditors and tax matters, transferring property or firearms, and communicating with heirs and beneficiaries.
Some government and legal processes are outside the direct control of the family or executor.
Baker said advisers do not need to become fiduciary specialists themselves but can help clients to understand what the process involves, ensure that appropriate planning and information are in place, and connect clients with professionals experienced in deceased-estate administration.
Complexity needs to be considered
A client’s assets, liabilities, family structure, and personal circumstances can affect the scope of the estate-planning discussion.
Baker identified property, business interests, firearms, assets abroad, debt, minor beneficiaries, and more complex family structures as factors that should prompt a deeper conversation about estate planning.
The timing of that conversation is also relevant. Baker identified marriage, divorce, the birth of children, the acquisition of new assets or business interests, and changes to beneficiaries as events that should prompt a review of the estate plan.
“A valid will is foundational, but a client can have a will and still have liquidity gaps, outdated beneficiary nominations, inadequate provision for dependants, or an estate that has become more complex over time,” he said.
This broadens the estate-planning discussion beyond whether a will exists. For advisers, changes in a client’s family circumstances, assets, liabilities, or beneficiaries can provide reasons to revisit arrangements rather than treating estate planning as a once-off exercise.
Minor children require specific consideration
The survey found that 18% of respondents reported disruption to their children’s schooling. Separately, Baker identified particular estate-planning considerations for clients with minor children or other dependants. Parents should consider nominating preferred guardians and using appropriate arrangements, such as a testamentary trust, to protect and manage a child’s inheritance.
Advisers should also consider whether sufficient financial provision will be available for children and other dependants, both immediately after the death and over the longer term, Baker said.
The issue is therefore not only who inherits, but also what arrangements are intended to apply to the inheritance and how dependants will be provided for.
Families need to know where to find more than the will
The person who handles much of the estate administration may not be the client’s adviser or lawyer.
The survey asked respondents who mainly handled the deceased estate and associated administration or paperwork. Fifty-four percent identified a family member, 15% a law firm, 10% a financial adviser, 9% a bank or financial institution, 6% a specialist company, and 3% a friend.
Because the question asked who mainly handled the estate and its paperwork, the responses should not be interpreted as a breakdown of formal executor appointments.
Three-quarters of respondents were involved in managing or dealing with the deceased estate, while more than half were either heavily involved or the main decision-maker. Nearly half experienced a heavy administrative burden, compared with 21% who experienced little or no administrative pressure.
The most commonly reported estate-administration challenge was delays in government processes, cited by 33%. Other challenges included paperwork or administrative problems at 30%, delays in accessing money from the estate at 29%, poor or unclear communication at 29%, and processes that were difficult to understand at 28%. The question allowed respondents to identify more than one difficulty.
For advisers, Baker said communication and access to information should form part of the planning process.
Clients do not need to disclose every detail of their estate plans, he said, but families should not be left completely in the dark. Appropriate people should know the client’s broad wishes, whom the client has nominated for important roles, and where essential information can be found.
That information can include the latest signed will, policy and investment details, asset and account information, property and business documents, and the contact details of professionals involved in the client’s financial and estate planning. Baker said someone trusted should know where the current information is kept and whom to contact.
The importance of communication should also be considered against the wider pressures respondents reported. Forty-two percent experienced family conflict or a feud following the death, while 60% experienced emotional strain that affected their daily lives.
The survey does not establish that unclear estate plans caused those disagreements or emotional effects. Capital Legacy says disputes may concern money, property, responsibilities, who should be involved, who should inherit, and whether the deceased’s wishes are being respected.
Estate planning as an ongoing conversation
Many respondents reported taking steps to improve their own preparedness after losing a loved one. Ninety percent said they had taken at least one step to prepare themselves better, including speaking to their families about what should happen if they died (47%), writing a will (43%), putting an estate plan in place (32%), and consulting a financial adviser (27%).
The survey did not establish whether respondents who consulted advisers after the death had previously received financial advice.
Baker said the broader opportunity for advisers is to make estate planning an integral part of the financial-planning process rather than treating it as a standalone exercise.
A valid will remains a foundation of estate planning. But the broader issue is whether the client’s arrangements address the financial, administrative, and family circumstances that would arise after a death.
