Pension Fund payout.

Assallamu Alaikum Wa Rahmatullahi Wa Barakaatuh

Respected Mufti Saheb

Your valued ruling in the following matter is required.

Inheritance

Facts Established:

1 My late brother was employed by Edgars and as a condition of employment had a compulsory pension fund with them. He had no option in accepting or declining being part of the fund.

2 At retirement he was compelled in terms of the (The Pension Funds Act ) of South Africa to comply with the following :

2.1 Allowed to draw (commute) a maximum of one third as a lump sum from the pension in cash.

2.2 To invest (two thirds) of the payout in a compulsory monthly pension based portfolio with a registered financial institution. Apart from a prescribed monthly pension income, he was not allowed access to the funds under any circumstances whatsoever.

3 One third of the payout was cashed in by the Marhoom for his use.

4 The Marhoom invested the remaining two thirds with :

(i) Oasis (living annuity) and

(ii) Sanlam (living annuity).

The above mentioned compulsory investments were in line with legislative regulations for Pension, Provident, Retirement Annuity and Preservation Funds in South Africa and thus he had no choice but to comply.

5 My brother was not married and had no children.

6 He had no will in place.

7 For both the above mentioned annuities he nominated one of his siblings as the sole (100%) beneficiary.

Question

For Sharee distribution purposes, does the payout go to the estate of my late brother or the nominated beneficiary?