Groceries still need to be bought. School fees must be paid. Rent, rates and taxes, remain due. But the person who used to pay for these, is gone. And the money they left behind may not be accessible, at least for a while.

This is the challenge many South African families face after losing a loved one: There may be an inheritance coming, but there are bills to pay now.

The 2026 Capital Legacy Estate Readiness Index™ found that 53% of respondents experienced financial pressure after losing a loved one. Among those under financial pressure, 66% had a cash shortage within just three months.

This index surveyed 1 000 South Africans who had lost someone in the preceding five years. It shows how quickly financial pressure can intrude on the difficult process of grieving.

Among respondents who had to find extra money, 27% borrowed from a bank or friend and 11% sold something such as a car or property. This shows that having to find money in a hurry can come at a cost, especially when the household is already adjusting to the loss of an income.

A will is essential, but doesn’t cover the cash gap

A valid will is an essential starting point of any good estate plan. It records who should inherit and helps provide direction when someone passes away. However, a will does not provide the money needed to keep a household going in the immediate aftermath of losing a loved one, especially if that person was the primary provider.

“When a bereaved family comes to us, their questions are often very practical. Where will they get the money for everyday expenses? How will they pay the electricity bill? What happens to the home? A person can leave behind valuable assets and still their family could face immediate cash-flow problems. Your estate planning must take into account the inheritance, but also what your family will live on while your estate is being administered,” advises Deenisha Nadesan, Managing Director of Fiduciary Services at Capital Legacy.

In-house Capital Legacy data, covering estates opened during 2025, helps explain why. Average estate values were R1.86-million, average liabilities were R310 000, and 45% included at least one property. So, nearly half of all these estates had the bulk of their value wrapped up in a property.

A home can be a valuable legacy, but it cannot quickly be turned into money (liquidated) for this week’s groceries. Even an estate with assets worth more than its debts can have too little available cash (liquidity) to meet its obligations.

Money held in the deceased’s bank accounts will be subject to estate administration requirements, including being frozen as soon as the bank is notified that the account holder has passed away. Families should not assume that knowing their loved one’s PIN gives them lawful access to the bank account and the funds it contains.

Funeral provision remains important and is something that many South Africans prioritise. The survey underscores this, with 74% of deceased loved ones having had funeral cover, whereas only 20% had cover for the legal costs associated with dying. Paying for the funeral and funding the months that follow are very different needs. If your estate plan is to use the same money for both, you could be leaving your loved ones severely stretched financially, at a very difficult, emotional time.

The planning conversation needs to get into the detail

What does your family regularly spend, per month? Which expenses would have to be covered, even if your main source of income stopped? What money could your loved ones lawfully access, and how soon? Those questions deserve attention alongside the drafting of your will.

Then consider the estate itself. Debts, taxes, executor fees and property transfer costs must all be covered. A financial adviser or estate specialist can help you distinguish between the money that keeps the household going from the funds required to settle estate fees, and assist you in making savings and insurance work together.

Since being founded in 2012, Capital Legacy has been pioneering insurance for the unavoidable fees associated with passing away, and to date has saved its clients more than R2-billion. This is a proven way of protecting the inheritance you leave for your loved ones. Depending on the cover you choose, separate benefits can also provide cash (liquidity) for immediate family needs and beneficiaries’ care.

Different benefits and cover serve different purposes. Estate-fee cover should not be mistaken for life cover that pays out a lump sum when you die, or credit life insurance that is often required when you enter into credit agreements like home loans, vehicle finance, personal loans, and credit cards.

Knowing where to find important documents really matters too. Keep your will and policy details accessible to key people. Make sure your beneficiary nominations are current. And tell your family who to contact first, if something happens to you.

Most people don’t realise that the complexity of their estate and their preparedness in the case of death, can have a huge impact on the loved ones they leave behind. The Capital Legacy Estate Readiness Check is an online tool that offers a quick 2-minute check to see how prepared you actually are. Discuss any gaps in your estate plan with your financial adviser. If you do not have an adviser, contact Capital Legacy for assistance.

Leaving a legacy matters. But so does making sure your family can keep going while they wait for it.

Written by Capital Legacy