Parents urged to protect kids’ financial future
JOBURG - In planning for their children's financial future, parents are urged to ensure that they have a valid will and adequate insurance cover.
These were the words of Deon Nel, head of financial consulting at Standard Bank, who said having an up-to-date will, which can be drawn up at a bank, and an insurance plan will ensure that children are financially and emotionally protected in the event of a parent’s death.
Nel also stressed the consequences of passing away without ensuring that an adequate will is in place. “If you pass away without a will, your estate will be distributed according to the Intestate Succession Act, 1987. Under these laws, your closest relatives will inherit from you, but they may not necessarily be the people whom you intended to have your assets,” he said.
“Not having your assets go to your preferred beneficiaries is one thing, but the thought of having the State decide who will look after your children is most worrying [and] this is exactly what will happen if you do not appoint a guardian to take care of them.”
He further highlighted that many people avoid estate planning because they dislike thinking about mortality.
“The passing of a loved one is traumatic for any child, whether an adult or still legally underage. A will and an insurance plan will make sure that your children are well taken care of when you are not around, offering them much comfort, stability and security in an emotional time,” he concluded.
Other steps to protect your children’s financial future:
- Select a guardian for your children
- Select a trustee
- Discuss your plan with your children
- Discuss your estate planning with adult children.
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