Financial planning made easy for single-parent households

BEING a single parent to a minor child can feel overwhelming, especially when you're solely responsible for daily expenses, education costs, and long-term planning.

- SHERRY TAPFUMA

Unlike two-parent households, there's often no financial fallback, which makes it even more important to build a solid plan that prepares for both expected and unforeseen events. Here are practical financial strategies to help single parents safeguard their family’s future.

Appoint a guardian for your child:

If you are the sole natural guardian, it's crucial to appoint a trusted person in your will to assume guardianship should you pass away. If the other parent is still alive, they will automatically continue as the child's natural guardian, but it’s wise to formally document your wishes to avoid future disputes.

Draft a valid, well-structured will:

Your will is the cornerstone of your estate plan. Children under 18 can't legally inherit cash or manage inherited assets. If you leave assets directly to your child, a guardian, who could well be your ex-spouse, will manage those on their behalf. To avoid this, ensure your will includes a testamentary trust to manage the inheritance for your child until they are old enough to take control.

Consider a testamentary trust: