Being a parent comes with a huge responsibility of nurturing your child in a safe environment. Although The Children Act 1989 defines all the possible rights of children, parents are naturally devoted to their upbringing and safety. But all these provisions hold when you are alive and able to take care of your little ones.
Upsetting as it may seem, have you ever wondered who will take care of your children after your demise? Below are 4 easy ways that will ensure your child’s protection in an event of your death or incapacitation.
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1. Draft a Valid Will
The best way to secure your child’s future is to create an estate plan that includes a Will. By drafting a valid Will you can distribute a fair share of your assets to the children you are responsible for (biological or step child). It is a common misconception that a Will is created only to resolve remarriage issues or family conflicts. But in actual, if you die intestate then the law will assume an estate plan for you, which may not be according to your wish. The law decides your property distribution (bank accounts, real estate and other assets) on the basis of how much your estate is worth and the order of priority for beneficiaries. It is highly unlikely that someone will be there for contesting a Will in your absence. In this scenario, your children might not get the share you intended them to have. Therefore, drafting a valid will not only put your heart at peace, but will also make the probate process run smoother and quicker.
Keeping a track of beneficiaries is also crucial while planning your property distribution. For instance, if you miscalculated them and your Individual Retirement Account still records the beneficiary you skipped (let’s say your former spouse), the content in your Will may be rejected.
2. Opt for Life Insurance
Life insurance becomes essential when you enter parenthood and your family is financially dependent on you. It usually works as a salary replacement, so your kids aren’t left with an inability to maintain their standard of living. When it comes to opting for life insurance, there are certain rules of thumb that should be considered.
3. Appoint a Trusted Guardian
Designating a trusted person in the Will as your child’s guardian is another way of ensuring proper care, custody and education of your child. Like the property, if this matter is left unattended during your lifetime, the law will appoint a guardian whom you would not have chosen.
4. Transfer the Power of Attorney
When you’re in no position of making decisions, neither would your naive children be. For this reason, you must transfer the power of attorney to someone whom you can trust. This gives him full authority of making decisions on your behalf. Assigning a power of attorney is yet another useful aspect of estate planning that is of two types: medical and financial. The former focuses on deciding the matters relating health care and the latter is in charge of resolving financial matters (like writing your checks).
As a parent, you know how important it is to give the best possible care to your child, with or without your presence. Creating an estate plan will ensure that your child receives the degree of comfort you wish to provide.