Women taking responsibility for estate planning

Women are increasingly taking control of their financial futures. They are building careers, running businesses, accumulating wealth and, in many cases, carrying the primary responsibility for raising children. Yet, one area of financial planning still receives far too little attention: estate planning. 

Many women assume that drafting a will is something that can wait until later in life, or that it only becomes necessary once significant wealth has been accumulated. The reality is that every adult who owns assets or has dependants should have a valid will in place. Without one, the distribution of an estate is determined by the laws of intestate succession, rather than by personal wishes. This can create unnecessary delays, costs and uncertainty for loved ones at an already difficult time. 

For mothers in particular, estate planning extends well beyond deciding who inherits assets. It is about ensuring that minor children are protected financially if the unexpected happens. While many parents have life insurance in place, fewer have considered how those proceeds should be managed until their children become financially mature. 

Testamentary trusts 

This is where trusts play an important role. A testamentary trust, established through a will, enables assets intended for minor children to be managed by trustees according to the wishes of the deceased. Rather than a large inheritance being paid directly to a child or administered under less flexible arrangements, the trust provides ongoing oversight of investments and distributions for education, healthcare and living expenses. 

However, establishing and administering a stand-alone testamentary trust is not always the most practical solution. For many middle-income families, particularly where estates are relatively modest, the costs of creating and maintaining an individual trust can outweigh the benefits. Administration, governance and trustee responsibilities all come with ongoing expenses, while registration with the Master of the High Court can also delay access to funds. 

Umbrella trusts 

An increasingly attractive alternative is an umbrella trust, such as the Fairheads Legacy Trust. These structures allow testamentary bequests to be housed within an existing professionally administered trust, with each beneficiary allocated their own sub-trust. Because administration and governance costs are shared across multiple beneficiaries, umbrella trusts can offer a significantly more cost-effective solution without sacrificing professional oversight. They also avoid the need to establish an entirely new trust structure before benefits can be distributed. 

Professional trustees, supported by appropriate governance and independent investment expertise, can ensure that inherited assets are managed prudently and in the best interests of beneficiaries. This can provide valuable peace of mind to parents who want their children to be financially protected, particularly during their formative years. 

Estate planning should never be viewed as simply a legal exercise completed at the end of life. It is an essential part of responsible financial planning that protects families, preserves wealth and provides certainty when it is needed most.  

For women, who often balance multiple financial and caregiving responsibilities, taking the time to draft a will and consider the most appropriate trust structure is one of the most important investments they can make in their family’s future.