It is important to consider all possible scenarios when estate planning, including the tragic possibility that both parents could pass away, leaving minor children behind.
If you die intestate (without a will), the minor children’s inheritance will be paid to the Guardian’s Fund. In order to avoid this, you can stipulate in your will that a testamentary trust be set up.
Martin Hesse, Editor of IOL Money, writes about this topic, quoting Phia van der Spuy, a FISA member and Fiduciary Practitioner of SA® (FPSA® ).
Read the article here.