30/04/2026
Your Child’s Inheritance Deserves More Than Good Intentions, It Deserves a Clear Plan
For many parents, building a legacy is not only about creating wealth. It is about creating security, stability, and opportunity for the people they love most.
Yet one of the most important parts of that legacy is often not the wealth itself, but the structure behind it.
When a minor child receives an inheritance, whether through an estate, investment, or life cover proceeds, they cannot independently manage those funds in the same way an adult can. This means that where no clear plan has been put in place, legal and administrative processes may determine how those assets are held, accessed, and managed on the child’s behalf.
In certain circumstances, funds intended for a minor may be administered through the Guardian’s Fund, overseen by the Master of the High Court. This system exists to protect minors and preserve funds until they are legally able to receive them.
That protection plays an important role.
However, default systems are designed to provide oversight and compliance. They are not always tailored to the unique needs, timing, or preferences of each family.
Depending on the circumstances, access to funds may require formal applications, supporting documents, and administrative processes. This can become challenging when money is needed for school fees, healthcare, or day-to-day support.
There is another important consideration.
Where proper estate planning has not been done, particularly where there is no valid will in place, the surviving parent or legal guardian may continue exercising guardianship rights and may play a significant role in decisions affecting the child’s welfare and financial support, subject to applicable law.
In many families, this works exactly as it should.
But sound estate planning should never rely solely on assumptions or good intentions.
It should rely on structure.
This is where a properly drafted will can make a meaningful difference.
A valid will can establish a testamentary trust for your minor child. This creates a formal structure through which inherited assets can be managed according to your wishes, by appointed trustees, for the benefit of your child.
With the right trust structure in place:
• Funds may be used directly for education, healthcare, and approved living expenses
• Trustees can oversee how assets are managed and distributed
• Clear rules can guide how and when funds are used
• Ongoing support can be provided over time rather than through a once-off lump sum
• Assets can be managed with long-term stewardship in mind
Without planning, default processes may apply.
With planning, your intentions remain central.
Estate planning is not simply about having a will. It may also include beneficiary nominations, liquidity planning, and where appropriate, trust structures designed to protect minor children.
Because when it comes to your family, good intentions matter.
But a clear plan matters even more.
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Article written by Paballo Diaho
Co-Founder & CEO, Finance Hut Brokers
