PENSION FUND DECEASED ESTATE
My mother passed away in 2013. An attorney offered to assist us with the administration. The total assets was a mere R12,000, and the estate was insolvent. The distribution plan was approved and everything has been finalized and the attorney resigned from his duties. However, now after almost 4 years, we the family (My father, my sisters and I) have been traced by her pension fund. They advised there is an amount payable. My question is how do we proceed since there technically is no authorized person (although the family wants me to act on their behalf), how do I obtain a letter of authorization and 2ndly, is a pension to be paid to creditors, does the estate have to be re-opened? Kind Regards Natasha
Dear Natasha, many thanks for this question. Was your mother and father married in community of property? I gather she died intestate. As you and your siblings and father are her only immediate family they can give you the necessary power of attorney to collect the pension and then divide it equally. Take note pension funds are usually left via an authorisation by the deceased where they are employed in favour of the deceased’s nominees and these are not to be used for debt repayments.