CREDITS
By Ockert Vermaak

As parents, one of our most significant responsibilities is ensuring the well-being and security of our children, even after we’re no longer here to care for them. A crucial aspect of this is safeguarding their financial future, especially if they are minors.

Establishing a clear plan for managing and protecting assets through your will can provide peace of mind and ensure your child’s financial stability.

Here’s a comprehensive guide on how to safeguard assets for a minor child in your will:

1. Identify a Guardian:

First and foremost, designate a guardian for your minor child in your will. This person will be responsible for the care, upbringing, and decisions regarding your child’s welfare if you and your spouse are unable to fulfill this role.

Choose someone you trust implicitly and who shares your values and parenting philosophy.

2. Establish a Trust:

Consider setting up a trust to hold and manage assets on behalf of your minor child.

A trust allows you to specify how and when your child can access the funds, ensuring they are used for their benefit. You can appoint a trustee to oversee the trust and make financial decisions in the child’s best interest.

This arrangement provides some flexibility and protection, as the assets are held separately from your division of your estate.

3. Determine Distribution:

Decide how you want the assets to be distributed to your child. You can specify that the funds be used for specific purposes, such as education, healthcare, or living expenses.

Alternatively, you can establish age milestones at which your child gains access to a portion of the trust funds, such as reaching adulthood or completing higher education.

4. Name a Trustee:

Select a trustee to manage the trust on behalf of your child. This individual or entity should be financially responsible, trustworthy, and capable of making sound decisions regarding the management and distribution of assets.

Consider appointing a professional trustee, such as a financial institution or a trusted family advisor, to ensure impartiality and expertise in handling financial matters.

5. Provide Clear Instructions:

Clearly outline your wishes and instructions regarding the management and distribution of assets in your will. Be specific about how you want the trust funds to be used and under what circumstances distributions should be made. Consider including provisions for contingencies, such as appointing successor trustees or modifying the trust terms if necessary.

6. Review and Update Regularly:

Regularly review and update your will and estate plan to reflect any changes in your circumstances or preferences. Life events such as marriage, divorce, the birth of additional children, or changes in financial status may necessitate revisions to your estate planning documents.

Ensure that your will accurately reflects your wishes and provides adequate protection for your minor child’s assets.

Safeguarding assets for a minor child in your will is a critical step in securing their financial future and ensuring their well-being in the event of your passing.

By designating a guardian, establishing a trust, determining distribution guidelines, naming a trustee, providing clear instructions, and regularly reviewing and updating your estate plan, you can create a comprehensive strategy to protect your child’s inheritance.

Consulting with an experienced estate planning attorney can help you navigate the complexities of wills and trusts and ensure that your wishes are carried out effectively.

With careful planning and foresight, you can provide your child with the financial security and stability they need to thrive.