New Baby Congratulations
The arrival of a new baby can turn your world and your plans for the future upside down, in the best way possible of course. You suddenly have a tiny bundle relying on you for its every need. There is so much to think about with endless nappies and feeds, visits from Midwives and Health Visitors, family and friends stopping by to meet the new arrival and of course trying to get some much needed, and rather elusive (except for the very lucky), sleep!
It is a wonderful time and the last thing most new parents want to be thinking about in those precious first days and months is what would happen if something should stop them from being able to provide for their little one. However it is incredibly important that they do, if they have not done so already.
I’m sure that most of you will have considered the financial implications of one or both of you dying and put in place protection, probably in the form of life insurance, and if not then you should, but have you also made sure to either make or update your Will.
If you have not made a Will then the intestacy rules will apply to your estates and most importantly of all you will have absolutely no say over who is made guardian of your child. In very simple terms the intestacy rules mean that if you are married, or in a civil partnership and one of you was to die then in most cases the bulk of your estate (at least £250,000) will pass to the survivor of you with the balance (except for assets owned jointly with someone else), if any, passing to your child. If both of you were to die or if you are not married or in a civil partnership, then everything you own (except for assets owned jointly with someone else) will pass to your child. In either case where funds are being held for your child, your Trustees have to pass those funds to them at age 18 or earlier if they marry before age 18. Do you expect your child to be able to manage that responsibility at age 18? Please contact Tollers for more detailed guidance on the intestacy rules.
Now that you are parents your Will should include your wishes as to who should be made guardian of your child in the event of both of your deaths, it should also include financial provisions to allow those guardians to raise your child in the way you hoped you would be able to. It will also likely to be appropriate to include a form of trust in your Will to allow your chosen responsible adults, your Trustees, to look after your estates for the benefit of your child. This could be until they reach a certain age if you chose to designate one or, if you until the Trustees think they are responsible enough to do it for themselves.
Talk to Tollers to make this process as straightforward as possible, and give yourself piece of mind about your child’s future.