insurance policy with Discovery Life Limited (Discovery) insuring
the life of his wife, whom he was married to in community of property in 2007,
in terms of which he appointed himself as the beneficiary of the policy. The same policy also insured his life and appointed his wife
as beneficiary in the event of his death.
proceeds from Discovery as the beneficiary of the policy.
the proceeds would be made to the trustees of the insolvent estate. He
approached the Pretoria High Court in Wentzel v Discovery Life Limited and Others to object and claimed that the administration of the insolvent estate
had long since been finalised.
to a nominated beneficiary, being an unrehabilitated insolvent, would vest in
the beneficiary or the trustees of the insolvent estate.
remained vested in the trustees until such time that the insolvent was either
re-vested with the estate, pursuant to a composition or his rehabilitation,
neither of which had occurred. Accordingly, it directed that the insurance
proceeds had to be paid directly to the trustees of the insolvent estate.
have made the beneficiary of the Discovery policy a trust and not themselves. Living Trust-centered estate plans provide superior asset protection.