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Do you put the inheritance of your child in the hands of the government?

As parents, we dedicate our lives to caring for our children and ensuring that their needs are physically, emotionally and, of course, financially met. Our aim is to bring up happy, healthy and balanced young adults who can make good decisions, and hopefully give them a favorable start in life through our efforts and good stewardship, and they Protecting them from the big and bad world while they are still young.

But what if you suddenly leave there to take care of them?

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“When children lose their parents, they and their heritage become high court wards.”

Who will take on the parental cloak you left behind and who will ensure that the legacy you have accumulated for your child is actually received by them and properly managed for their benefit?

What many parents are unaware of is that they leave their inheritance to the mercy of the Government Guardian Fund if they do not properly prepare for the possibilities they will face tomorrow without them. is. When a child loses his parents, the child and his inheritance become a high court ward.

“The Government Guardianship Fund, a structure established to protect and protect inheritance for the most vulnerable people in our country, is often lacking in carrying out its mission.”

What exactly is Government Guardian Fund??

The Guardians Fund is under the control of the Master of the High Court. Each South African High Court has its own parental fund. This structure is set up to protect and manage the inheritance of the most vulnerable people in our country, including minors, those who have no control over their work, fetal heirs, missing or absent or untraceable. But in many cases it fails and is lacking in carrying out its mission.

According to a recent report, the Government Guardianship Fund receives more than R1 billion annually to hold and manage on behalf of beneficiaries.

Frightening this fact is the number of fund-leveled cases of fraud and fraud management. In 2010, then Minister of Justice Jeff Radebe 80 million rants He was fooled by the government guardianship fund. In addition, in 2019, the President ordered the closure of all master’s offices nationwide and the Special Investigation Unit to collect information on fraud and fraud control. 10 million rants It was stolen from the Guardians Fund.

Request for maintenance from the Parents Fund for minors

If the inheritance of a minor child is managed by the Parents Fund, a legally appointed minor parent must apply for the release of daily living expenses such as clothing, food and school fees. This, however, imposes archaic management processes and strict application requirements that are inflexible given Covid’s virtual requirements. In many cases, this means delayed release of funds, which can have a serious impact on a child’s life.

Money that has not been charged to the Guardians Fund for 30 years will be confiscated by the state. That is, if a child is unaware that his inheritance has been paid to the Parents Fund and does not claim it within 30 years of turning 18, the state will retain it.

“Many people can’t get their will in turn just because they can’t avoid it.”

Simple Solution-Create a will.

There is this general misconception that society needs to draft a will only if it has excess wealth and a lot of wealth, but the will does more than that. Include in your will not only who inherits what, but who should be the guardian of your child and how you should manage the money and assets you leave for them-you Ensuring that inheritance left to the child is managed Efficiently, compassionately, and capable.

Many people cannot get their will in turn simply because they cannot avoid it. In fact, procrastination is the number one reason for dying without a legitimate will. They know they need to do it, but they never find time to do it – it’s our children and their dependents who pay the price.

Why set up a testamentary trust?

If you don’t provide a testamentary trust at your will, there are only two options left regarding what happens to the assets and money you leave for your child-first, the government guardian up to your child. The fund will be paid to the age and claim it, or secondly, it will be given to the legally appointed guardian of your child for management.

If money and assets are given to parents to manage, parents have little responsibility to use inheritance solely for their children and their needs, and often someone is familiar with their finances. If not, the inheritance will be wasted before the child will be old and you will be able to manage your own money.

Not providing your testamentary trust means that the future of your child without you will be subject to uncertainty as to whether the governmental organization or appointed guardian is responsible. I will. A testamentary trust can only be created after the person who started it has died, so the best way to plan this is at your will.

No one cares about your child like you, and the best way to ensure that your legacy lives beyond you is now to plan the unexpected – and at your will Document it.

Alex Simeonides, CEO of Capital Legacy.

Do you put the inheritance of your child in the hands of the government?

Source link Do you put the inheritance of your child in the hands of the government?

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