The Guardian Trust is a safe alternative to the Guardian Fund of the Master of the High Court. Policy benefits payable to minors can be managed on their behalf by the trustees of the Guardian Trust to the sole benefit of the beneficiaries.
Where a minor child has been nominated as beneficiary of your life policy proceeds, the insurer would be obliged to pay their portions to their natural/legal guardian to manage on behalf of the child.
Unfortunately, this can result in the child not being the sole beneficiary as the guardian may use the money for other purposes, such as paying off creditors. The guardian might also not be financially competent to manage and invest the funds wisely.
Nominating a trust will be the solution, as benefits payable by policies to minor beneficiaries can be managed on their behalf, and to their sole benefit, by the trustees of the trust.
Important: A nomination form must be completed and signed to indicate that the benefit must be managed on behalf of the beneficiary, in the Sanlam Guardian Trust.
The trust account will be set up free of charge, as it will be managed under the Sanlam Trust Guardian Trust Umbrella deed registered at the Master of the High Court (Reference IT4509/98).
The trust deed contains the provisions according to which the benefits paid to the trustee are to be administered.
The trustees administer the trust assets at all times for the sole benefit of the beneficiaries in accordance to the provisions of the deed.
The Trustees are not obliged to provide the Master of the High Court, or anyone else, with security for the proper execution of its duties as trustees of the trust.
Sanlam Trust indemnifies the beneficiaries against any loss or damage which may occur in the event of negligence, dishonesty or fraud caused by any Sanlam Trust staff.