The Guardian’s Fund or a Testamentary Trust: What Happens to a Minor’s Inheritance?

If your children or grandchildren inherit while they are still minors, who will manage their inheritance - and how will the people caring for them obtain money for their needs?

This is an important discussion to have when drafting your will. Simply leaving money to a child does not establish how that inheritance will be managed.

What happens if your will does not make suitable arrangements?

Where a minor inherits money from a deceased estate and there is no effective, legally permitted alternative arrangement, the executor will generally have to pay that money into the Guardian’s Fund, administered by the Master of the High Court. This can happen even where there is a valid will. The precise position depends on the will, applicable law and any relevant court order.

The Fund holds and protects the child’s money. Naming someone to care for your child does not, by itself, establish a testamentary trust or give that person unrestricted access to the inheritance.

Can the family access the money for the child’s expenses?

Yes. The money is not simply inaccessible until adulthood.

A guardian or qualifying caregiver can apply for assistance with expenses such as schooling, medical care, clothing and accommodation. Applications must be supported by the required documents, quotations or accounts, and payments may be made directly to service providers.

The practical issue is that this involves an application and approval process. A family cannot treat the inheritance as an ordinary bank account from which it can immediately pay every expense. The official requirements include application forms, identity and banking information, and supporting evidence of the child’s needs. This creates paperwork and may require follow-up - something families should plan for.

The Guardian’s Fund administers beneficiaries’ money without an administration charge and credits interest at the prescribed rate. The remaining money generally becomes claimable at 18, although a will can specify a later entitlement age. A later age is therefore not a benefit exclusive to a trust.

How does a testamentary trust differ?

A testamentary trust is created through the provisions of a valid will and takes effect after death. Your will sets out the beneficiaries, appoints trustees and establishes the rules under which the inheritance must be managed.

The trustees must obtain the Master’s written authority before acting. They must administer the trust properly and account for their management of its assets.

With suitable wording, the trust can provide for education, maintenance, medical care and other needs, while preserving and investing the remaining assets. It can also provide for capital to be distributed at specified ages or in stages.

For example, you might want support to continue through university, with capital distributed later rather than in one payment at 18. Those wishes need to be translated into workable legal provisions.

A properly structured trust can give appointed trustees greater flexibility to respond to beneficiaries’ circumstances within the will’s rules. It still requires administration, supporting records and responsible decisions; payments are not automatically immediate.

Why the wording of your will matters

Do not assume that a sentence saying “look after my children’s inheritance” is enough.

Ask your will-drafting professional to address:

Who will serve as trustees, including replacements.
What expenses the trust may pay.
How the assets may be invested.
When beneficiaries become entitled to income and capital.
What happens if a beneficiary dies before receiving their full inheritance.
The administration, investment and tax costs.

A testamentary trust has ongoing responsibilities and costs, so its suitability should be assessed against the inheritance’s size and the beneficiaries’ needs.

My preference is to discuss these arrangements while drafting the will, rather than leave a grieving family to discover the consequences afterwards. Where minors or dependants need continuing support, carefully drafted trust provisions and capable trustees can be an important part of protecting their inheritance.

For the wider discussion of free will drafting, estate-cost cover and continuity, read A free will is only the beginning: who will look after your family’s inheritance?

Provider information and official sources

Prepare for the conversation and organise your records

GFS Will Preparation Workbook - South Africa: R49.99
A 16-page printable and fillable workbook to gather your details, record preferences and prepare questions for your chosen will drafter. This is an optional, independent GFS preparation resource, not a will, a provider application or a charge for free will drafting.

The Complete Financial Affairs Organiser - R149.99
A broader family record for organising important financial information and where to find it.

Deceased Estate Administration - R109.99
A South African educational guide to the administration process.

Browse the GFS Product Library or visit Get Financial Savvy. An organiser or workbook supports planning; neither replaces a valid will.

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General South African financial education. Obtain advice appropriate to your circumstances from a suitably qualified legal, tax or authorised financial professional. Product prices checked 2 November 2026.