BENEFICIARY TRUST FUND - NMG Administrators Botswana

WHO ARE WE?

The NMG Administrators Botswana Beneficiary Trust Fund (The Fund) is a trust fund established for the purpose of managing the benefits of minor beneficiaries as well as psychologically challenged major beneficiaries. The Fund is mandated to receive, administer, invest and pay benefits on behalf of the beneficiary until they reach the specified termination age as per the regulatory requirement. The Fund is governed by the Non-Bank Financial Institutions Regulatory Authority (NBFIRA).

The Fund is managed and controlled by a Board of Trustees, and a Principal Officer. The Trustees appoint service providers including external independent auditors and investment managers for the efficient management of the Fund. The Trustees are also responsible for ensuring that the Fund is managed in accordance with the approved Rules of the Fund, as well as all legislation governing beneficiary trust funds. The Rules of the Fund are approved by the Non-Bank Financial Institutions Regulatory Authority as well as the Botswana Unified Revenue Service (BURS). The Trustees of the Fund may make changes to the Rules of the Fund as they deem fit from time to time, however these changes must be approved by NBFIRA and BURS.

HOW THE TRUST OPERATES

Upon transfer of the minor beneficiary’s benefit into the Fund, a Trust account shall be opened for the beneficiary. Below is an overview of how the Trust will be managed and what you can expect:

1. NEW ENTRANTS

All the new entrants into the Fund will be issued with enrolment letters to confirm their participation in the Fund.

2. FUND MANAGEMENT

The funds will be invested prudently to ensure growth and sustainability for the duration of the Trust.
Disbursements will only be made in line with the Trust’s terms and after proper verification and approval.

3. DISBURSEMENT OF FUNDS

Scheduled payment: when requested, regular payments will be made to the beneficiary either monthly, quarterly, bi-annually, or annually. The appointed guardian will therefore be required to complete a form detailing how much is required to take care of the beneficiary on a monthly and/or on an annual basis. Please note, however, that depending on the total benefit of the beneficiary, the Trustees may vary the amount of the regular payments.
Ad-hoc Payments: payments will be made to service providers as requested by the guardian to take care of the beneficiary’s needs. (Refer to the section on Responsibilities of the Guardian: Financial Assistance Requests)

4. ANNUAL STATEMENTS

Annual Statements will be issued outlining the trust’s performance, balance, and any disbursements made during the year.

5. TRUST ACCOUNT TERMINATION

The Trust will be terminated upon the beneficiary reaching majority age of 18 years, depletion of funds, death of the beneficiary or as required by law from time to time.
In the case of psychologically challenged beneficiaries, the Trust will be terminated when the beneficiary recovers. A medical report will be required as proof, thereafter the beneficiary will be paid their benefit as per the above process for minor beneficiaries.
Upon termination, any remaining funds will be distributed in accordance with the Trust rules.

The guardian will be guided and advised accordingly ahead of the termination date

RESPONSIBILITIES OF THE GUARDIAN

The guardian plays a vital role in helping to fulfil the purpose of the Trust and in ensuring that the funds are used in the beneficiary’s best interests.
To ensure that the Trust operates smoothly and continues to serve its purpose, the guardian’s responsibilities are:

FINANCIAL ASSISTANCE REQUESTS:

To make sound financial decisions on behalf of the beneficiary.
To make financial requests for the beneficiary’s needs, when the need arises, such as;

o Clothing.

o Educational expenses (e.g. school fees, school uniform, educational trips, study material).

o Medical expenses.

To submit all requests in writing, detailing the intended use of the funds and including any supporting documentation. At least 2 quotations are to be provided.

Please note that these requests are subject to review and approval by the Trustees/internally. Once the request is approved, the funds shall be paid directly to the service provider. In cases where the funds are paid directly to the guardian, he/she will be required to submit the receipts to the Fund. Failure to submit the receipts will result in halting future financial assistance, and possible legal action. Therefore, to avoid disadvantaging the beneficiary, the guardian is requested to comply.

RESPONSIBLE USE OF FUNDS:

Ensure that all disbursed funds are used solely for the beneficiary’s benefit and in alignment with the purpose for which the funds were requested.
Act in the best interests of the child by managing requests, in order to preserve the child’s benefit until they reach the termination date.

UPDATING DETAILS FOR BENEFICIARIES/GUARDIANS

Immediately notify the Fund of any changes to the guardian’s contact information, including postal address, phone numbers, banking details, residential address or email.
Inform the Fund promptly of any changes in the beneficiary’s circumstances that may affect the administration of the Trust.

CERTIFICATE OF EXISTENCE (COE):

The guardian will be required to complete and submit a Certificate of Existence (COE) form on an annual basis to verify that both the guardian and the beneficiary are alive. COE’s are required to ensure that funds are paid to existing guardians and/ or beneficiaries.
The COE will be sent to the guardian annually in September for completion and submission to the Trust by the end of November.
It should be noted that failure to submit a COE will result in halting future financial assistance. Therefore, to avoid disadvantaging the beneficiary, the guardian is requested to comply.

CHANGE OF GUARDIAN:

Should the circumstances surrounding the guardian and the beneficiary change, resulting in the need for change in guardianship, the guardian is required to immediately inform the Fund at NMG.
The guardian will be required to liaise with the nearest NMG regional office to initiate the change.

COMPLIANCE WITH TRUST REQUESTS:

The guardian is required to provide any documentation or updates required by the Fund in a timely manner, during the administration of the Trust.