The Guardian’s Fund is a fiduciary mechanism established to safeguard and manage funds on behalf of certain individuals, including minors (persons under the age of 18), individuals incapable of managing their own financial affairs, and those whose whereabouts are unknown. Typically, these funds originate from inheritances. The Guardian’s Fund operates under the aegis of the Master of the High Court, which ensures its regulation and administration. 

Funds are required to be deposited into the Guardian’s Fund in several scenarios, primarily revolving around the beneficiaries’ inability to manage their own finances.  

These scenarios include: 

• When a minor inherits money from a deceased estate. 
• When an individual who is incapable of managing their own affairs inherits money. 
• When an individual whose whereabouts are unknown inherits money. 
• When the Master of the High Court directs that money from a deceased estate be deposited into the Guardian’s Fund. 

Management of Funds by the Guardian’s Fund 

Upon receipt, the Guardian’s Fund undertakes the following actions: 

• An account is opened in the beneficiary's name. If the beneficiary’s details are unknown, the account is opened in the name of the deceased estate or the payer. 
• The deposited funds accrue interest subject to periodic adjustments. 

Conditions for Claiming Funds from the Guardian’s Fund 

Funds become claimable when the minor reaches 18 years of age. However, a will may specify a different age for disbursement. Funds are claimable once the individual is deemed capable of managing their own affairs. For instance, an insolvent individual can claim the funds upon rehabilitation. Funds are claimable when the beneficiary becomes aware of the existence of the funds. 

Procedure for Claiming Funds 

To claim the funds, the beneficiary must complete and submit an application form to the nearest Guardian’s Fund office, accompanied by: 

• A form detailing the bank and personal details of the beneficiary. 
• A certified copy of the beneficiary’s identity document. 
• A marriage certificate, if applicable. 
• An adoption order, if relevant. 
• A set of fingerprints of the beneficiary, obtainable from a local police station or the Guardian’s Fund. 

Applications must include 

• A form specifying the nature of the assistance required. 
• Bank and personal details of the guardian or curator. 
• Information regarding the beneficiary’s income and expenditures. 
• Relevant receipts and quotations. 
• Certified copies of identity documents for the guardian, curator, and beneficiary. 
• Fingerprints of the guardian or curator. 

Payments can be directly made to third parties, such as educational institutions. 

Unclaimed Funds 

If the funds remain unclaimed for 30 years after becoming claimable, they escheat to the State. The Guardian’s Fund annually publishes a list of unclaimed funds in the Government Gazette. 

Avoiding Payment to the Guardian’s Fund 

Individuals can prevent funds from being deposited into the Guardian’s Fund by stipulating in their will that the money be paid into a testamentary trust on behalf of another person, such as a minor. 

Conclusion 

The Guardian’s Fund serves as a critical institution in managing and safeguarding inheritances for those unable to do so themselves. By understanding its functions and processes, beneficiaries and guardians can effectively navigate the requirements for claiming funds, ensuring proper financial management and support. 

Written by Robyn Shepherd, Attorney, SchoemanLaw Inc