If you would like to ensure that your family will be OK financially should anything happen to you, it is important to look through your paperwork and your financial affairs and get your ducks in a row. Without a will or getting a power of attorney, you cannot prevent fights and disagreements, or even losing your property to the government. While you want to be there forever for your kids and guide them to make the right decisions, this is not always possible, due to illness or accidental injuries. To ensure they will not be negatively affected, here are a few things you can do.
You should get a life and health insurance, so if you cannot work and provide for your family, there will be a regular or one-off payment that will protect their financial future. However, if your kids are under age, you will need to appoint a guardian who will look after your assets and funds until they reach the legal age. This can be your partner, a relative, or even a legal professional. Ensure that when your family situation changes, you change your insurance and both the beneficiaries and the guardians.
You can teach your kids to save money early, or start a savings account for them. This money will be available to them to withdraw when they need money. Depending on the type of account you have, you can set up an account with yearly, monthly, or one off payouts after they reach a certain age. Consider what they will need the money for; education, wedding, or getting their foot on the property ladder, and set the age accordingly.
Funeral Care Accounts
One of the things that can ruin your kids’ and loved ones’ finances is the cost of funerals. While nobody likes thinking about this, you certainly have to. In case something happened to you, you will need to get your family to have access to the money immediately, not after the reading of the will. This is where funeral care plans come in. They usually pay out quickly, and are tailored to your preferences.
If you would like your kids to become financially independent of you, it might be a good idea to set up a college fund for them. The sooner you start, the better growth potential you will have. You can determine the level of risk you would like to take when investing the money, and once they finish high school, they will have enough to continue their education without having to get into debt of hunting for scholarship opportunities and taking a course they are not really interested in.
Education and Helping them Gain Work Experience
If there is one skill you can teach your kids to do, it is helping them navigate their way around the job market and make the most out of their opportunities. This is a skill they usually don’t learn in school, but it is important for getting ahead in life. Help them get their first job, teach them about what to put on their CV, and how to showcase their value. No matter if it is just a summer job, it will count in the future when they are looking for a full time position.
Taking Care Of Your Business Affairs
If you run your own business, you will need to ensure that it carries on working when you are incapacitated and cannot run it. Getting a business lasting power of attorney might be a good idea, as you will be able to appoint someone to handle the finances of your company and keep it running, while you are recovering. Choose someone you can trust and who has the skills and time to keep your company running, so you don’t end up losing everything.
One of the greatest assets your family can have is the property you saved up and paid for. You don’t want to lose it. Consult with a real estate attorney, so they can look through the deed and let you know if you have to do anything to prevent legal problems. If you want to keep your home or would like your kids to inherit it, speaking to an eminent domain attorney can be a great idea. They can check whether there is a risk of the government taking ownership without compensation, and how to eliminate the danger of losing your house.
Teach Them Financial Planning
You might be the person who sets up the family budget and handles all the invoices. Sooner or later, when the kids fly the nest, they will be required to take on the same responsibilities. Involve them in financial decisions and show them how you work out the budget for the family, and how you prioritize expenses and bills. Teach them how to cook on a budget, and how to save money using coupons and discount codes. Tell them about the dangers of credit cards, and make them streetwise when it comes to debt, so they can embark on a journey of financial independence.
Get a Will
No matter how well you secure your health, your life, your property, and your business; without a valid and expertly crafted will, it might all be in vain. You should sit down with a professional solicitor who will look at your individual situation and help you make the most out of this very important document, so it protects you and your loved ones, and makes it easy for them to inherit and get on with their lives, should something happen to you. Not all wills are created equal, and it is important that you cover every situation, so your family doesn’t have to go through unnecessary stress.
Making the most out of your finances today might be challenging enough. Looking after the financial future of your loved ones is even more difficult. Implement the above advice and you can rest assured that your children will not have to worry about money more than necessary.