Series | Week 19
Title: Estate Planning and Education Funds: Securing Your Child’s Future Through Wills and Trusts
One of the greatest gifts a parent can give their child is the assurance of a secure education. Yet, many parents overlook how estate planning can be used as a powerful tool to guarantee that school fees and university costs are well provided for — even when the parent is no longer around.
In Botswana, we often think of estate planning as something only for the wealthy or the elderly, but in truth, every parent who has dependents should have a clear plan in place. Education is one of the most important legacies you can leave behind, and with proper planning, you can ensure that your child’s education continues uninterrupted no matter what happens
Setting Aside Money in a Will
A will allows a parent to specify exactly how their estate should be distributed after death. Within the will, you can include a clause that earmarks a specific amount or percentage of your estate to be used for your children’s education. For instance, you can direct that a portion of your savings or proceeds from the sale of property be held by the executor or guardian for the sole purpose of paying school fees, uniforms, or university tuition.
However, because minors cannot directly manage money, it is essential that you also name a responsible guardian or trustee to manage these funds until your children reach the age of majority or complete their education.
Using a Trust for Education Funds
While wills are a good starting point, trusts provide an even more structured and secure way of setting aside money for education. A trust can be established during your lifetime (known as an inter vivos trust) or after your death (through your will). In both cases, the trustee — who could be a family member, a lawyer, or a trusted professional — will manage the funds according to your instructions.
For example, you can set up a trust that states:
“The trustee shall use the income and capital of the trust for the educational needs of my children, including tuition fees, books, accommodation, and other related expenses until each child completes tertiary education.”
This ensures that the money cannot be misused and that it is applied strictly for its intended purpose.
Benefits of an Educational Trust or Fund
Continuity and Protection: The child’s education is safeguarded even if both parents pass away.
Flexibility: The trust can be tailored to specific needs — whether for primary, secondary, or tertiary education.
Accountability: Trustees are legally bound to use the funds as directed.
Peace of Mind: Parents have comfort knowing their children’s educational future is secure.
A Practical Step for Every Parent
Estate planning is not about how much you have — it’s about protecting what you have for those who matter most. If you have children, it’s wise to sit down with an estate planning professional to structure your will or trust so that your intentions are clear and legally enforceable.
In next week’s article, we will dive into Estate Planning and Divorce – Why You Must Update Your Will After Separation-Prevents unintended inheritances going to an ex-spouse.
