When a plan pays out to a minor beneficiary, their natural or legal guardian will usually manage or administer the money on their behalf.
Unfortunately, this can result in the minor not being adequately taken care of, for example, when the guardian:
- Mismanages the money so it runs out too quickly
- Uses the money for purposes other than for the sole benefit of the beneficiary.
To prevent the possibility of the above, the client can instruct Sanlam Life to transfer the benefits directly to the Sanlam Guardian Trust. The trustees will then administer the funds on behalf of the minor beneficiary until they turn 21, and ensure the funds are used for the sole benefit of the minor.
Clients can therefore have the peace of mind that their legacy is in safe hands and their loved ones will be well taken care of when they’re no longer able to care for them.
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