Have you thought about how a Will can protect your children?
Most parents would agree that their children are their most precious assets. Yet shockingly many parents with children under 18 have failed to make provision to protect them in the event of death. Statistics show that only 16% of adults aged between 35-44 have wills. The exact age where most people are beginning to think about or have a young family.
The kindest thing you can do for your children to ensure their future security and happiness is to make a Will. Jane explains some of the reasons why:
Protect your children with a Will – appoint a Guardian
We know this isn’t easy to think about, but who would take care of your children if you weren’t around? And even if you know, don’t assume that they would have the legal right to do so. Social Services will take the decision out of their hands. In extreme cases, children can be placed in temporary care while these decisions are made.
Appointing a Guardian in a Will is not just about ensuring your children’s financial future. It is also about their future physical security and care. You give your named guardians the legal authority they need. You can also provide them with guidance about how you’d like your children to be brought up etc.
Protect your children with a Will – marriages and stepchildren
Increasingly these days, with second and third marriages, the situation gets complex.
You may not be the natural parent of a child, but you may view your stepchild as one of your own. They may spend a lot of time with you and have a really close relationship. You may want to make sure they are included in the provisions of your Will too.
Or you may not have a good relationship, or not be close at all. And you want to ensure that your own children are protected first.
You may own a home with your new spouse and you want to make sure your share goes to your own children.
Either way, making a Will makes sure that what YOU want happens. If you die without a Will, you are leaving it to chance – for example.
- Your spouse will get the bulk of your estate, and your own children may get nothing.
- Your children inherit but your loved stepchild won’t.
- Your spouse may have to sell the home to ensure your children get their inheritance.
Protect your children with a Will – including a trust
Leaving money to children can be worrying. What if they aren’t old enough to be sensible about it? We hear lots of stories about young adults who have inherited at the age of 18 and the money is frittered away in a very short time. So how do you protect your inheritance?
- Leave money to someone else to look after it for them? Please don’t do this!!! What if that person gets into financial difficulties? Or divorces? Or dies? That money is classed s theirs and will be lost to your children!
- Stipulate an age of up to 25. The money is then held safe by the trustees of your Will, in a “Young Persons Trust” until that time. You can provide guidance to distribute money earlier at their discretion for special events if you like.
- Stipulate an age of over 25. The money can be held in a Discretionary Trust for your children and others (e.g. grandchildren). The trustees of your Will have the discretion on what to pay and when – again you can provide them with guidance.
Protect your children with a Will – Property Trusts
Another type of trust is a Property Trust.
2 of 5 homeowners don’t have a Will – yet your home is often the most valuable asset in your estate, and often owned jointly with your partner. If you want to ensure that your share passes ultimately to your children, you should be aware of the risks created by passing it your partner when you die.
- Your spouse/partner remarries …. their existing Will would be invalid and without making another Will, your home could pass directly to the new spouse, bypassing your children.
- Your partner needs long term care … the home can be included in any financial assessment. If they own the whole home, it may be used to pay care fees, leaving no asset to pass to your children.
A property protection trust (PPT) clause in a Will is designed to help protect the inheritance of your children. Your share is left into a PPT but your partner can live in the property securely until death (or before if you agree). Once the trust ends, your children are guaranteed your share of the home.
Protect your children with a Will – some things to consider.
All the above are ways to protect your children with a Will. When making yours, here are some of the things you may wish to consider:
Guardians
Think about who you would want your children to live with. Discuss it with that person to make sure they will do it.
- If appointing a couple, what would you like to happen if they separated – is it one of them you would prefer?
- If you’re separated from the other parent, then discuss (if possible) who you would both want nominated. Remember that if the other parent has parental responsibility, they will be the first choice for your children to go to. If that is not what you want, then you need to leave specific directions as to why you do not consider that an acceptable placement and know that this may require a court decision.
- Consider how you want your children brought up and do a letter of wishes to accompany your will setting out those directions. You and your children will then no you have a voice in the future of how their lives are developed.
Money
- Consider the age your children may inherit, and who would be good as trustees for their inheritance.
- Ensure your nominated guardians are not the only trustees. You need to have an independent voice for any financial decisions being made -especially if it relates to any payments being made to the guardians for you children.
- Nominate your children as beneficiaries on any / some pension or life insurance you have.
Property
- Consider leaving your share of any joint property into a trust – so that no matter what happens in the future, there is some financial security for your children.
Here at Morecambe Bay Wills we have experience of ensuring that families are properly protected. We offer a free initial interview and discrete discussions in the comfort of your home, or in our central Lancaster office if you prefer.
Call us on 01524 571032 for an initial friendly chat or request any of our FREE information guides here.
YOU MAY ALSO WANT TO LISTEN TO WHAT NICOLA HAS TO SAY ABOUT WILLS FOR PARENTS IN THIS EPISODE OF THE “NON PERFECT PARENTS PODCAST“.