Creating a Will
Creating a Will is one of the most crucial steps in ensuring that your child ’ s dreams become a reality . In South Africa , a Will must be drafted in writing and signed by the testator and two witnesses of 16 years or older who are not beneficiaries .
When drafting a Will , it is important to consider how your child ’ s assets will be managed after your death . Here are some considerations :
Funding for education expenses : You can include provisions in your Will to allocate funds specifically for your child ’ s education and related expenses . This can be done through a Trust or by designating a specific portion of your estate to be used for educational purposes . You can specify the types of education expenses for which funds can be used , such as tuition , books , fees and other associated costs .
Education Trusts : Consider setting up an Education Trust as part of your Will . An Education Trust is a type of Trust that is specifically created to provide for a child ’ s educational needs . It can be structured to provide for a child ’ s educational expenses at various academic career stages , such as primary and secondary school or any tertiary education . A trustee can be appointed to manage the Trust and ensure the funds are used for educational purposes .
Flexibility : Consider providing flexibility in your Will for changes in your child ’ s educational plans . For example , if your child decides to pursue a different career path or attend a different educational institution you thought they would when drafting your Will , it may be helpful to include provisions that allow for adjustments to be made to the educational funds accordingly .
Age and conditions for distribution : Consider specifying the age or conditions under which the education funds should be distributed . For example , you may want to require that your child reach a certain age or complete a certain level of education before the funds are distributed to ensure that they are used for educational purposes .
Contingency plans : Include contingency plans in case your child does not pursue tertiary education . For instance , if your child chooses not to attend university , you may want to provide for alternative uses of the education funds , such as vocational training or starting a business .
Trustees : Appoint a trustee knowledgeable and experienced in managing educational funds . The trustee will be responsible for managing the funds and making decisions regarding their distribution per the provisions in your Will .
Legal and tax considerations : Seek advice from a qualified attorney and tax professional to ensure that your Will complies with all applicable laws and regulations and to understand the potential tax implications of the education provisions in your Will .
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