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No minor matter

Protecting the interests of your under-18 beneficiaries

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Father and son sitting by edge of stream holding a stick in the water

Your legacy is more than just wealth – it's the future you envision for those closest to your heart. When minor beneficiaries are involved, ensuring your wishes are carried out exactly as intended requires proper planning.

When a minor is nominated as a beneficiary on your policy, the proceeds cannot be paid directly to them. This creates two potential scenarios, each with specific risks (outlined below). 

 

The funds are paid to the minor's natural or legal guardian
  • No regulatory control over how funds are used
  • No guarantee the assets will be used the way you intended
  • Limited protection of your beneficiary's interests
  • Although most natural or legal guardians are loving and responsible people who will look out for your child’s best interests, there is a risk that they will make financial decisions that don’t align to the intentions you had for your child’s future.
Without a legal guardian, funds are transferred to the state Guardian's Fund
 
  • Access restricted until age 18
  • Limited to fixed-interest investments
  • Potentially lower returns
  • Complex withdrawal processes
  • May require court-appointed guardianship
Our solution - a testamentary trust

A testamentary trust ensures your legacy is protected and managed exactly as you envisioned it.

The benefits
  • Complete alignment with your intentions
  • Flexible access to funds when needed
  • Legal protection of beneficiary interests
  • Peace of mind for you and your family
How it functions

This type of trust is established through your will and will come into effect upon your death. When you pass, proceeds are paid directly to the trust, where a trustee manages the assets according to your specified wishes. As a result, your minor beneficiaries' interests are legally protected.

 

 

What other options do I have?

Although a testamentary trust is the most secure option, you could consider appointing a person (any adult who may or may not be the natural or legal guardian of the minor) as a beneficiary on your policy.

This individual should be someone you trust to make sound financial decisions and oversee the well-being of your child in a way that honors your wishes regarding how the funds are spent.

Ready to start the process?

  • If you have an existing will

    Ensure that your will makes provisions for a testamentary trust. If not, contact your existing provider to amend it.

    Remove any minor beneficiaries currently listed in your will, and then appoint the testamentary trust as the new beneficiary in place of the minor.

    Login to Investec Online or the App to update your beneficiary nominations accordingly to reflect the changes made in your will.

  • If you need to create a new will

    We have several online templates that incorporate testamentary trust provisions depending on your whether you’re married, unmarried and have children.

    You can access it through Investec Online:

    1. Log into online banking, and navigate to Tools
    2. Select "Explore now" under "Manage my Life"
    3. Under "Do you have a will" select "Find out more"
    4. In your private vault, select "Wills and estate"
    5. Select "Create your will" under explore

    Once you have created your will, remember to update your policy’s beneficiary information on Investec Online.

Download our brochure for steps to update minor beneficiaries to a testamentary trust

Updating your beneficiary nomination online guide PDF 571.44 KB

FAQs

  • What is the difference between a natural and legal guardian?

    A natural guardian is a child's biological parent, automatically having parental responsibilities and rights, while a legal guardian is appointed by the court to act in the child's best interests when natural guardians are unable or unwilling to do so.

  • How do I set up a testamentary trust?

    A testamentary trust is established through your will, and it becomes effective upon your passing. The executor of your estate plays a crucial role in this process, as they are responsible for carrying out the instructions outlined in your will. This includes setting up the testamentary trust according to your specified wishes.

  • What happens to the trust when my beneficiary turns 18?

    You can specify the terms of distribution in your will, including whether the trust continues beyond age 18.

  • Can I modify the trust arrangements?

    Yes, you can update your will and trust provisions as your circumstances change.

  • What should I do after I create a will on Investec Online?

    1. Print two copies of your will, ensuring both copies are signed as originals in the presence of two competent witnesses, with all parties present at the same time. These should be done in black pen.
    2. Both witnesses must be at least 14 years of age and cannot be a person mentioned in the will.
    3. The testator (the person making the will) must physically sign each page, as well as the two witnesses.
    4. Ensure you input the place, date, and year of the will when signing, as shown on the final page, with no open spaces (if there are spaces, draw a line through them).
    5. Store one copy of the original signed will in a secure place and inform your executor or a trusted family member about the location of the will. The other copy is to be kept at a separate location.
    6. Upload a digital of the signed will to your Private Vault once signed.
Statutory information

Investec Limited and its subsidiaries, including Investec Bank Limited - 1969/004763/06, registered credit providers and authorised financial service providers. Investec Life Limited, a member of the Investec Group, is a licensed Life Insurance Company (Reg.No. 1944/017130/06) and an authorised Financial Services Provider (FSP number 47702). Terms and conditions apply. These terms and conditions may be amended without notification at any time during the offer period.