Fairheads’ umbrella trust product, The Fairheads Legacy Trust, is gaining traction, particularly among lawyers, as a solution for the trusteeship and administration of lump sums paid out by various means including testamentary provision, medical malpractice claims or – in this case – the Road Accident Fund (RAF).
Case study one
Sibusiso Dlamini, key accounts consultant in Fairheads’ Durban office, received a call from a lawyer in Richards Bay. Both parents of two minor children had tragically passed away in a road accident and the lawyer, on behalf of the guardian, was looking for a flexible vehicle to administer the RAF benefit of around R2 million.
Nothing in the market seemed suitable until he did an internet search and came across the Fairheads Legacy Trust. The guardian did not want the funds to be locked in, rather requiring a monthly income and occasional capital payments for the likes of school fees. She also wanted about 15% of the total to be kept aside in cash for immediate use.
The RAF payout was made in August 2018 and the sub-trust on the platform was set up swiftly. It is going well and the guardian is happy. We are pleased we were able to help ease such a painful scenario for the children.
Case study two
In another example, a client, now aged 23, had been a member of the Fairheads Umbrella Trust for 8 years and on turning 21 the account had been terminated and he was paid out the remaining lump sum. When he had a car accident about a year later, the RAF paid out the claim of approximately R500,000.00 to the client’s bank account. Both the bank and various other parties tried to persuade him to invest the lump sum with them, but our client insisted on using Fairheads, saying that he knew and trusted us. Accordingly, a sub-trust was set up for him on the Fairheads Legacy Trust platform and the payment made from the bank.
We are naturally delighted to have received such an endorsement and will do our very best to ensure we live up to the expectations of this young man.