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When love meets legacy: Estate Planning for cohabiting retirees in South Africa

Published: September 30, 2025

An increasing number of South African retirees are choosing to share their lives without formalising their partnerships through marriage. While this may reflect a broader shift toward autonomy and companionship in later life, it also raises important estate planning questions - especially when the law doesn’t treat cohabiting partners the same as married spouses.

Unmarried, but not unentangled

Retirement can bring about new living arrangements that are emotionally and financially intertwined yet remain legally undefined. This creates what could be called the autonomy paradox: while cohabiting partners maintain complete control over how their assets are distributed, the absence of legal frameworks leaves them more exposed than many realise.

“Without a Will, cohabiting partners may find themselves excluded from inheriting altogether,” says Yvonne Mojela, Fiduciary Services Specialist at PPS. “A Will transforms intentions into enforceable actions. For cohabitants, it’s the only bridge between informal arrangements and legal recognition.”

Four areas where cohabiting retirees are most vulnerable

While marriage automatically triggers certain legal protections, cohabiting partners must build those protections deliberately. Some of the most critical gaps include:

Medical decision-making
In the absence of legally binding healthcare directives, hospitals are not obliged to include partners in critical care discussions. During a health crisis, the lack of formal authority can delay or complicate care.

Property ownership risks
When one partner passes away, a jointly occupied home registered in their name may legally pass to their biological heirs - regardless of the surviving partner’s stake in it.

Tax inefficiencies
Spouses benefit from estate duty exemptions and more favourable tax treatment. Unmarried partners, on the other hand, may face capital gains tax and estate duty on asset transfers.

Uncertain pension outcomes
Even when listed as a beneficiary, an unmarried partner’s claim on a retirement fund is subject to trustee discretion. Legal recognition is not guaranteed, and payouts can be delayed or redirected.

A three-pillar approach to cohabiting estate planning

PPS encourages cohabiting partners to take a structured approach that considers both present needs and future uncertainties. This includes:

Cohabitation agreements
These agreements set out each partner’s financial responsibilities and define how assets will be handled if the relationship ends or one partner dies.

Trust structures
Trusts - such as the PPS Beneficiaries Trust - can provide a structured means for managing and transferring wealth, especially where minor children or vulnerable partners are involved. “It’s a safety net that prevents assets from being tied up in the Guardian’s Fund or becoming contested,” says Mojela.

Regular document reviews
Estate plans should evolve alongside the relationship. Wills, healthcare directives, and digital asset access should be reviewed annually or when significant life changes occur.

Emerging assets, emerging risks

PPS data shows that 63% of cohabiting clients overlook digital assets - such as cryptocurrency and online intellectual property - in their estate plans. “Modern love requires modern planning tools,” Mojela notes. “We’re adapting trust structures to handle everything from NFTs to AI-generated content, alongside more traditional forms of wealth.”

Planning for clarity, not crisis

Estate planning isn’t just about passing on wealth - it’s about ensuring dignity, clarity, and continuity for those we care about. As more retirees choose cohabitation, the need for tailored legal and financial frameworks becomes critical.

Cohabiting partners are encouraged to move beyond verbal agreements and document their intentions. With the right planning, it’s possible to honour the autonomy of modern relationships while safeguarding the future for both partners and their families.

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