As parents, your children will naturally be your number one priority. Making sure they have a roof over their head, food on the table, and clothes on their back goes without saying, however, it’s all too easy to focus on the present, rather than thinking about the future. Should you pass away unexpectedly, knowing your family is financially secure will put your mind at ease. If you aren’t sure where to start, here are five things that you can do.
Think of Yourself First
Contrary to what you may believe, the most important step you should take when it comes to protecting the financial future of your loved ones is by prioritising your needs first. Whether this is by reducing debt or planning your retirement, the last thing you want is for these shortfalls to fall on your loved one’s shoulders. While you may think it’s selfish to think of yourself before your family, getting your situation in order first is crucial.
Set Clear Financial Goals
Once you’ve got everything in order, the next step you should take is to create financial goals to keep your loved ones protected. Things such as your living expenses, assets, and any debt you have accumulated will help you create clear financial goals, helping you save for your children’s future. Setting goals from the offset will give you something to work towards and help you establish where you are now, as well as where you would like to be in the future.
Make a Will
If you die prematurely, this potentially puts your family in a precarious position, making it more important than ever to make a will. While drawing up a will may fill you with dread and be something you don’t want to think about, we can never be certain of what life throws at us. Thankfully, there are lots of tips that you can take on board to help you get your affairs in order.
Think About Your Estate
One of the best things that you can do to protect your loved one’s financial future is by giving some thought to estate planning. If your estate is worth £325,000 or less, you can leave it behind without having to think about paying inheritance tax (IHT), however, if you’re married or in a civil partnership, you’re able to gift the same amount of money to them, meaning you can create a total estate of £650,000 before IHT. Don’t forget, you also have the option to gift individuals up to £3,000 per tax year without being liable to pay tax.
Protect Your Income and Home
Whether you suffer an illness, injury, or pass away prematurely, it’s crucial that you protect your income and home. The last thing you want is to jeopardise your loved one’s financial wellbeing, so whether it’s by considering rent or mortgage protection or income protection, there are several routes that you can go down. You can also visit Compare NI who can help you compare a range of life insurance NI providers.
We all want our children to be well taken care of, regardless of whether we’re there or not. To ensure your loved ones are secure, be sure to explore all the routes listed above which can make sure your family is financially protected should the unexpected happen.