Creating a financially stable future for your child is something any parent would want, which is why estate planning is crucial. However, understanding the inheritance rights for children can help you navigate your way around things such as leaving a will.
Dying without a will
As many as 70% of South Africans die without a will to their name. This is known as dying intestate. But what does this mean for your children? It means that whatever assets you have will be given to certain people who are called beneficiaries such as a legal spouse, children, blood relatives and adopted children.
It also means that you will have little to no control of who will receive which asset. It also means that a partner that has not been legally married may not be considered when dividing your assets. It is only once any debt has been paid off and your spouse has received their share (if you have been married in community of property) will the rest of your assets be given to your children.
A child's inheritance rights
Your surviving children (even if they are adopted) will receive a share from the estate once debts have been paid and your spouse has received their portion of your estate once you have passed on. In most cases the sum available from your estate will be divided equally among the number of children you have. It also means that assets will be split in the middle and given to each child. However, should your children be younger than 18 years old, it could be passed onto a guardian.
The only drawback of this option without having a will in place that states a person you would like to be a legal guardian of your children is that the state will pass the responsibility to your spouse or a family member that is not of your choosing. It also doesn't safeguard your children from things such as being pressured into parting with the assets you have left behind for them or your assets being used as intended.
Having a will to protect your legacy
We all don't know what tomorrow holds, but there are some ways to prepare to make sure that you and your loved ones are financially protected. Having a legally recognised will is one of the ways in which you can do this. Not only will it give you peace of mind knowing that your loved ones will be taken care of and receive what is meant for them, but it also means that you have more control over how you would like your estate to be distributed. You can choose a guardian, plan what you would like payouts and policies for investments to be used for and even state if you want specific assets to be given to certain members of your family to avoid a situation where your loved ones quarrel amongst each other.
