FNB launches Estate Protector benefit to help settle customers’ deceased estate admin costs

Aneesa Razack

Lee Bromfield

FNB has launched its Estate Protector benefit to help customers cover costs associated with the administration of their deceased estate. The FNB Estate Protector benefit will be used to settle the customer’s Executor’s fees and any costs associated with the administration of one’s deceased estate.

In addition to covering the Executor’s fees, the Estate Protector benefit will cover fees such as Testamentary trust set-up fees, fees incurred in the conveyance of property from their beneficiaries, vehicle licensing and registration costs, valuation fees, professional and master of the high court fees, newspaper and government gazette notice costs as well as any other estate expenses excluding personal liability payments.

With the above outlined costs in mind, it is evident that a key part of estate planning is to ensure that there is sufficient liquidity in one’s estate to meet all your various financial obligations without detracting from the inheritance intended for your loved ones.

Aneesa Razack, CEO of FNB Fiduciary says, “One common challenge that we continue to see with many of our customers is the lack of liquidity in their estate to cover any outstanding debt and admin related fees to wrap up their estate. Through the Estate Protector benefit, the proceeds will be used to settle these costs and fees. In addition, any funds that remain after settling the Executor’s fees and any additional costs such as testamentary trust set-up fees, valuation fees, and costs incurred in the transfer of property from the estate to the beneficiaries will be paid to the Deceased estate and will form part of the estate assets.”

To help people get an accurate view of whether their estate is in a good financial position to cover these costs and debts, “My Will and Legacy” on the FNB App provides customers with the option of receiving a detailed liquidity assessment once you’ve created your Will, which provides an estimate of the financial obligations associated with administering your estate. “This feature has become increasingly popular, with 46% of users who draft their Will on the FNB App clicking through to complete this valuable financial assessment,” says Razack.

Concerningly though, these assessments reveal that approximately 87% of customers who check their cash position against the anticipated estate costs face a financial shortfall, potentially burdening their loved ones with the responsibility of funding the estate’s finalisation. “When you know better, you have the opportunity to do better. It’s preferable for people to be made aware of possible shortfalls rather than have their loved ones discover it after they are gone. Possible solutions include taking up the Estate Protector benefit as a stand-alone product or with an FNB Life Customised policy as an added benefit to avoid situations where you have to sell your assets to unlock cash.”

Lee Bromfield, CEO of FNB Insure says, “One often overlooked aspect of financial planning, is the importance of marrying your legacy planning with sufficient insurance cover for your estate, which will ensure that your loved ones are protected, and your assets are distributed according to your wishes after you pass away. Ensuring that there is sufficient liquidity in your estate to meet your various financial obligations without detracting from the inheritance intended for your loved ones is imperative and through solutions like the FNB Estate Protector coupled with the FNB Life Customised policy, we aim to ensure a seamless management of their estate.”

Through this benefit, if clients take out this policy and have a signed Will with FNB nominated as the estate’s Executor, clients will also enjoy a discounted Executor's fee of 2.45% which is a 30 % discount on the current statutory rate. For example, if a customer has assets worth R10 million, without the discount they would pay Executor's fees to the value of R405 000 but with the discount applied they would pay R283 500. The customer would then save R121 500 with the FNB Estate Protector benefit.

Customers also get additional benefits when they include FNB Estate Protector as a benefit to their FNB Life Customised policy. The additional benefits include a funeral benefit of R30 000 at no extra cost which is paid out within 24 hours. Plus, a Spend Protect benefit that pays out to three times the average monthly card swipes and loan repayments with FNB and RMB Private Bank within 24 hours. Qualifying customers will also receive a 30% discount on the executor’s fee, up to 40% of their monthly premiums back in eBucks and up to 2500 eBucks reward level points monthly when they have their Will and life cover with the bank.

“We encourage our customers to take these solutions and maximise the rewards that come with them. If they need additional guidance, we implore them to contact our Advisors who can help them achieve the estate liquidity that they need, to safeguard their loved one’s inheritance,” concluded Razack.