Vital elements of financial planning part 3

By Faeza
28 July 2015

Vital elements of financial planning

There are two vital elements of a financial plan when you have children: a valid Will and adequate insurance cover. 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 says Head of Financial Consulting at Standard Bank, Deon Nel.

Follow the step below to ensure that your children are protected:

Select a guardian for your children

This can be a close friend or relative, but make sure this person is willing to take on the responsibility of raising a child. A guardian can be anyone: a person with or without other children, male or female, single or married. Make sure you update this element of your will as circumstances and relationships change.

Select a trustee

You should not make the trustee of the will the guardian of the children as well, as it must be ensured that everyone is acting in the children’s best interest. Trustees can be family friends, relatives, a family lawyer, an accountant or a financial advisor.