Nobody wants to think about leaving their family behind. However, if the worst were to happen, would your family be financially prepared? If not, now is the time to start thinking about protecting your family’s financial future.
Here, we’ll look at some of the most important things you’ll want to do to ensure your loved ones are looked after when you’re gone.
Seek expert advice
It’s a really good idea to seek advice before you start planning for your family’s financial future. This is especially true when it comes to organising inheritance. You’ll find inheritance tax can be quite complex to understand. Therefore, it helps to have an expert you can consult with to ensure you understand the laws and that your family gets the right level of compensation.
You can also seek expert guidance on trust funds, gifting money and property to a partner and organising your will. Professionals will know where you can make savings and get the most returns.
Set up a trust fund
A trust fund is a great way of ensuring your kids are taken care of financially. Giving them access to a lump sum once they turn a certain age, a trust fund can be used for education, or to help get them onto the property ladder.
Setting up a trust fund isn’t always easy. This means you will need a solicitor to help you. You’ll also need to ensure that the rules of the trust fund are clear and cannot be misused.
Teach your children to be financially responsible
If you are planning on leaving your children an inheritance, it’s a good idea to teach them financial responsibility. There are lots of ways you can do this, such as getting them to save part of their pocket money.
You can also give your children pocket money for helping with chores. This teaches them that money doesn’t come for free. There are also child-friendly bank accounts you can set up to teach older kids about managing money.
The more financially responsible your children are, the better their future will be. You won’t need to worry about them wasting their inheritance after you’ve gone.
These are some of the first steps you should take to ensure your family are financially taken care of. Planning for the future is important, particularly when you have kids. So, if you haven’t yet got a financial plan, now is the time to look into it.