Estate Planning for Loved Ones with Disabilities
Estate planning is one of the most important things you can ever do for your children. Not only could it spare them having to tussle over your estate while mourning your loss, but it also serves as a parting gift from one generation to the next.
Unfortunately, an estimated 70% of South Africans do not have wills. This is especially concerning for parents of children with disabilities.
Importance of Estate Planning
Louise Danielz, Chief Operating Officer of Sanlam Trust, says, “For parents of children with disabilities, estate planning and drafting a will is even more crucial as these children may not ever be able to work and provide for themselves. If you are caring for a child with disabilities it is a good idea to enlist the help of a professional to draft your will, regardless of your income bracket.”
According to Statistics South Africa, out of a South African population of 62 million, around 3.3 million people were living with disabilities in 2022. Finding employment and being able to care for yourself can be especially difficult for this section of the population. That’s why parents of children with disabilities should seriously consider setting up trusts in their wills to ensure that dependants with disabilities are taken care of for the rest of their lives, in the event that one or both parents pass away.
Providing for Dependants with Disabilities
Dying without a will that makes provision for children with disabilities runs the risk of having their inheritance paid over to the Master of the High Court until they turn 18. This could seriously compromise their care. Putting measures in place while you are still alive, and understanding the practical implications of those arrangements, is very important.
“There is no time like the present to start your estate planning,” Danielz advises. “For example, the process of nominating a guardian for a child with disabilities can be tricky and time consuming if you have not made adequate plans, or had the proper guidance. There is also a range of options in terms of trusts that you can deploy to suit your unique circumstances, but those options require expert advice and careful consideration to ensure you achieve the best outcomes.”
If you do not do adequate estate planning, funds due to beneficiaries who are still minors could be paid to the Master’s Guardian Fund. You can avoid this by setting up the appropriate trust in your will.
Estate Planning for Those with Special Needs
The most important thing about planning for the future of your child with disabilities, in the event of your passing, is to make sure that their unique needs are considered.
Danielz says, “Selecting the right person to carry out your wishes is paramount. It needs to be someone you trust and who your child will be able to depend on to care for them in the best way possible.”
Why You Need a Trust
Having a trust is key if you want your estate to be administered , managed, and executed in the best way possible for your beneficiaries. Establishing a trust ensures that a dedicated administrator, in conjunction with an appointed guardian, acts with due care and diligence. The administrator will consider the maintenance needs of the beneficiary, engage with the guardian, and invest the funds appropriately.
Danielz says, “With Sanlam Trust, a dedicated administrator is appointed to engage with the guardian, so that they work together according to agreed guidelines to take care of the beneficiary’s immediate and future needs. If there is a need to consult with a specialised caregiver, for example, an occupational therapist, to make the best decision for the beneficiary, then that is what they will do.”
With the right planning, parents can take care of their loved ones with disabilities long after the parent has passed on.
“Planning gives you peace of mind and creates continuity and support for your loved ones. It is all about understanding what you want and how this can be achieved,” Danielz concludes.