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The Yes, No and Maybe of the Guardian's Fund
19 October 2017  | Koketso Selahle
 
The Guardian’s Fund falls under the management of the Master of the High Court with each Master administrating their own Fund, in total there are 14 funds across South Africa.



The Guardian’s Fund was formed with the purpose of administering funds which are paid to the Master of the High Court on behalf of various known and unknown persons, including:

•     Minors
•     Individuals who are unable to manage their own affairs
•     Unborn beneficiaries or heirs
•     Missing or absent individuals
•     Individuals having an interest in the moneys of a usufructuary, fiduciary or fideicommissary nature.

Administration, Fees and Investment

After the Master of the Court receives the money, they will then open an account in the books of Fund on behalf of the person to whom the money belongs or the estate of which the money forms part of. The account holder is not liable to pay any of the administration costs.

After which, the money will be invested with the Public Investment Corporation. Interest will accrue on a monthly basis at an annual rate, determined by the minister of finance. In addition, the Fund is audited annually.

Interest is then paid from the month after receipt up until 5 years after the money has become claimable, except if it is legally claimed before such expiration.

On your behalf, your guardian may by way of an application (Form J341) supported by quotations and accounts claim maintenance payments.

In order to ensure these funds are not abused, it can be arranged for the money to be paid directly to the specific service providers or creditors. An amount of up to R250 000 of the invested capital and all accrued interest can be utilised for maintenance costs.

Possible maintenance costs include:

•     School fees or university fees
•     Clothing costs
•     Outdoor activities
•     Medical fees

Reaching Majority Age

Once you reach majority age (18 years), get married or by declaration of the High Court of majority, you become entitled to claim your capital investment together with the accumulated interest.

An application must be made, which must be supported by your:

•     Certified identity document/passport
•     Marriage certificate (if applicable)
•     Fingerprints
•     And/or an order of court (if applicable)

It’s important to remember that a testator may specify another age as majority for when a beneficiary is entitled to the invested capital, for example the age of 21 years. Interest will only then accrue up until the age of 21 years old.

Important facts to remember

Money which remains unclaimed in the Fund for more than 30 years, upon which the beneficiary became entitled to claim it, will be forfeited to the state.

If you were left a fixed property by your grandparents, the executor of their estate could transfer the property to your name, or with the Master’s consent they may sell the property and deposit the proceeds of the sale to the Fund.

However, it is not advisable for anyone to bequeath fixed property to a minor (although not against the law). This is because, it becomes complicated to deal with the property once registered in the minor’s name due to the fact that minors do not have contractual capacity.

In times of tragedy, it is always comforting to know you have someone you can trust and that they have your best interests at heart.

Greyvensteins Inc., as administrators or executors of an estate, play a significant role ensuring that the correct recipients such as minor children, or untraced and undetermined beneficiaries, receive what is due to them by collecting all the funds. We then transfer the funds to the Guardian’s fund who act as the protectors of such funds.

We take great pride in ensuring that we maintain, and restore confidence in the people who entrusted us with their last will and testament, by ensuring funds are paid over to the Guardian’s Fund, while also assisting to claim from the fund.
 
 
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Tags: Trust, Will