Don’t Let Them “Blow It”: Protecting Your Legacy
“The cold and hard truth is that financial maturity does not necessarily come with age. How do you protect your beneficiaries from themselves?”
The High Cost of Instant Gratification
We’ve all seen the episodes of “I Blew It.” When wealth is distributed prematurely to beneficiaries who lack financial literacy, it is a recipe for disaster. I have witnessed this firsthand: a young client who inherited over a million rand and spent every cent in less than a year on shoes, eating out, and social media status.
Does Turning 18 Equal Maturity?
Many parents draft Wills stating that assets should be held in Trust until a child reaches 18. But does a birthday suddenly grant financial independence? A more robust plan might involve waiting until they complete tertiary studies, ensuring they have the tools to manage what they receive.
3 Strategies to Build a Lasting Legacy
A Will is the only way to ensure the right beneficiaries inherit from your estate according to your wishes, not the law of intestate succession.
Stipulate that assets be held in a Trust beyond the age of 18. This allows trustees to make sound decisions on behalf of your children until they are truly ready.
You can stipulate that the inheritance remains separate from any current or future marriages, protecting the capital from future marital disputes.
Normalize the Money Conversation
To build a legacy that lasts, finances must form part of our everyday conversations. As guardians, it is our responsibility to drive healthy discussions around money today, so our children can thrive long after we are gone.
Is Your Will Still Relevant?
Don’t leave your children’s future to chance. Review your estate plan with a professional to ensure your hard-earned wealth is protected.
Phina Nukeri, CFP®
Certified Financial Planner®
Disclaimer: This does not constitute financial advice. For proper financial planning, please consult a Financial Professional.
