Few of us like to think about death, but it is the one surely that comes to us all. Of course, when you have kids ensuring they are taken even when you are no longer on this mortal coil is a major concern. The good news is that there is plenty that parents can do to ensure their kids are provided for in the long term future. Read on to find out more.
Helping them now or later
Before we get onto discussing inheritance properly, remember that taking care of your children isn’t all about bequeathing vast sums of money after you have gone. In fact, in many cases striking a balance between providing them with the final assistance they need now and what they may need later is the best approach.
In particular, we can see this at work with the trend of parents providing some or all of the deposit their adult children require to get on the property ladder. In fact, this phenomenon is so common that some banks have special mortgages for precisely this situation.
Writing a will
Once you have decided on what you would like to leave for your children, you must make things official. Something you can do by writing a proper will.
In fact, there are several reasons to do this. The first being that losing a parent can be one of the most challenging times in your adult child’s life. Therefore, without a clear will, you could be making that situation even more difficult.
Additionally, to ensure your child is adequately provided for, making a will is the best option. Especially if it has been witnessed by a legal professional. Then anyone wishing to contest your will has a much more difficult job to go against your wishes.
Educating them on the process
Many families find talking about money and inheritance difficult. However, it is best to educate your adult children on the process. Even if you do not choose to discuss the exact figures or assets involved.
This is because there will be fees like inherited property taxes to consider. That is, if you leave your children’s property over £325.000, they will have to pay tax to the government on this, which could significantly affect their financial situation. Therefore the more they know about the process and are prepared to deal with it, the better.
Teaching them proper money management
Finally, as millionaires from all over the world will tell you what you leave to your family when you depart this world is only one half of the story. The other half is their ability to manage assets such as property, investments, or cash well.
To that end, making sure that you teach your child to foster a sensible and prudent relationship with money from an early age all the way into adulthood is vital. You may even wish to set some stipulations on the inheritance that you leave them. Something that will help provide you with the peace of mind that no matter what happens, your children will be provided for in the long term future.