Losing a parent - and a sense of security - is a traumatic experience for any child. Sadly, this painful process is often exacerbated when proper planning is not in place to ensure your children will still enjoy financial security, even if you are no longer here to provide for them.

Proper financial planning is crucial to ensure your children is financially provided for if you die, especially for minor children, children with single parents, children from a previous marriage and handicapped children.

Hein Klokow of Secure Legacy outlines a three-step process to ensure your children’s financial future is secure when you are no longer around. “A common concern, particularly with minor children, is how to determine and provide a sufficient income for them after the death of one or both parents,” explains Klokow. “A further concern is how this income, as well as any assets, will be managed and preserved to ensure the children have the financial resources they need until the time they become adults. We recommend a three-step process to address these concerns, and the expertise of an experienced estate planner who understands the different estate planning structures and can assist you to consider all the relevant factors applicable to your situation.”

1. Determine your children’s financial needs
Firstly, with the help of your estate planner, you need to determine your children’s financial needs. Every family is different with its own circumstances. In addition, the considerations for parents with minor children are different from those with adult children. There are also additional considerations when you have a handicapped child or children from a previous marriage.

2. Providing the financial resources
Once you have established what your children’s financial needs are in the case of death of a parent, you need to ensure that the financial resources are in place to meet those needs. The most common way to ensure that there is sufficient income for your minor children is to utilise family assets and life insurance policies.

3. Sustainable management
When the financial resources are in place, a structure is required to manage it sustainably to ensure it will continue to provide for your children’s financial needs until the time they become adults. Normally, in the case where one spouse dies, the other spouse inherits the estate assets and is also the beneficiary on the life policies. He or she then uses the life insurance claim payments and assets to cater for the financial needs of the children.

There are, however, often cases where you will have to consider alternatives, especially if you are a single parent, if your spouse is unable to manage the financial affairs or if you have a child from a previous marriage. Similarly, adult children who are not capable of managing their financial affairs can, with the right structure, be allowed to benefit from their inheritance without having to make financial decisions.

“In these cases, and in the eventuality of both parents dying, we generally make use of one or more trusts. The trust deed stipulates how you wish the funds to be utilised, who the trustees will be and when the trust should terminate so the assets pass to your children as they reach adulthood - usually at age 18, 21 or 25 or, in the case of a handicapped child, until death,” explains Klokow.

“The trustees have the responsibility to manage and invest trust funds as well as to adhere to your direction for your children’s health care, education and maintenance as set out in the trust deed. It is thus very important to choose your trustees carefully! You should consider appointing an independent trustee, who deals with the administration of trusts on a day-to-day basis, together with a trusted family member or friend, both of whom will work closely with your children’s guardian. This should provide structure, compliance and independence to the trust, ensuring your children’s inheritance is managed in their best interest.”

A further consideration will be the type of trust and the tax implications of each option. Your estate planner will be able to assist you in weighing up the advantages and disadvantages of different estate planning structures, considering all the relevant factors applicable to your family’s specific circumstances.

With expert advice and proper planning, you can ensure that your children will be provided for financially when you are no longer around to take care of them – a lasting gift that will continue to provide financial security long after you have gone.

Note to the editor:
About Hein Klokow
Hein is qualified with an LLB. CERT. IN TAXATION and is an admitted attorney of the High Court of South Africa. In early 2004, he joined an international financial institution, specialising exclusively with deceased estates, wills, trusts and estate planning. His 13 years of experience in his field of expertise gives him great insight into the practical, legal and tax consequences when structuring and administering trusts, wills and estates. He is currently a Director of Secure Legacy and involved in the development of deceased estate administration software, as well as will management software. He regularly presents learning sessions to financial advisors and seminars to clients, and has written articles for magazines such as The Property Investor on subjects related to his field of expertise.

About Secure
Legacy Secure Legacy assists business owners, professionals and families in protecting their wealth and securing their wellbeing through dedicated and independent solutions for executor services, estate planning, drawing up wills and setting up and managing trusts. Our core business is to secure the legacies of our clients by devoting ourselves exclusively to providing ongoing, specialist estate planning, trust and will services. 

For more information please visit http://securelegacy.co.za or to arrange an interview, please contact:  
Hein Klowkow
Director: Secure Legacy
Tel: 012 543 1806
E-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.

Cape Town, South Africa – 6 October 2016  

Carrick Wealth, the leading offshore investment advisory in Africa, is celebrating its second anniversary, and, in the same week, has opened an office in Gaborone that is fully compliant and regulated with the relevant authorities in Botswana.

The new Gaborone office in the Masa Centre is headed by Andrew Mhere, who is both the Managing Director of Carrick Wealth Botswana and Carrick Wealth Zimbabwe. He is supported by a team of diverse, highly qualified advisers.

With its headquarters in Cape Town and fully functioning offices in Johannesburg, Durban, Mauritius, Zimbabwe and now in Gaborone, Carrick Wealth is changing the face of the offshore financial services industry for high-net-worth clients and those starting out on their wealth journey.

[photo] Craig Featherby, Group Chief Executive Officer, says: “We’ve experienced extraordinary growth in such a short period of time and we are geared to extend the Carrick formula further into new markets in Africa.” 

In the 24 months that the Carrick Group of Companies has been in business, its growing team of specialist financial advisers is constantly kept abreast of all the changes regarding regulatory matters in the areas in which the Group operates.

A sophisticated technological platform is in place that keeps live-tracking of all activities connected with the industry, and with the business in particular, giving clients the surety that their investments are completely secure and monitored.  

As Carrick Wealth expands its footprint into Africa, it will be offering clients and advisers in each country the opportunity to experience professional, disciplined, innovative solutions and service. The Carrick team is growing, and now has 152 people working for the company – as against seven when Carrick first opened its doors exactly two years ago.

As the company celebrates its second anniversary, it can report that it has an advisory relationship with 787 clients, has over R2,2 million under management and has assisted in 443 QROPS pension transfers out of the United Kingdom into offshore structures.

Carrick Wealth offers clients in South Africa and elsewhere in Africa various financial and estate planning solutions, including the formation of offshore investment structures, portfolio management, private equity and venture capital asset allocations.        

MEDIA CONTACT:

Lynn Halliday (Group Marketing Manager)

CARRICK WEALTH
T: +27 (0)21 201 1000
This email address is being protected from spambots. You need JavaScript enabled to view it.
www.carrick-wealth.com