Worrying about your child’s future can keep you up most nights. Your child being helpless and vulnerable with no safety net to lean on can scare you. No parents want their child to have an unstable future. However, global events like a pandemic, war, or stock shortage can cause your hackles to rise.
While you can’t control the world, nor can you stop economies from shifting to a dangerous level, you can provide some security to your child. Every investment, saving, and funding you do for your child will benefit them in the future. Whether you start planning when your offspring is a toddler or teach them vital skills as soon as they become teenagers, you’re preparing them for a life that has yet to come.
Here are some ways you can make sure that your child always remains steady long after you are gone:
1. Speak To A Lawyer
Everything you have worked for in your life should go to your child. This is not an easy process when you have no Will or trust fund. The law works in a specific manner. If you wish your child could get all your assets, you need to contact a legal expert for help.
Once you set an estate plan, you can transfer possessions like a house, money, jewelry, and property to your child. By writing a revocable trust under the supervision of a lawyer, you can ensure these resources pass on to your child.
A revocable trust also requires a Will, which remains unchallenged in court. It also defines how your goods should get transferred to your child, including any inheritance tax they may need to pay. There is also an added advantage of drafting a revocable trust.
You can do so if you wish to change the terms and conditions or add another clause. The final steps include appointing a trustee, listing the beneficiaries, and handing over the documents to your lawyer.
Once you pass away, this trust becomes irrevocable. So, no one can contest in court for no reason.
2. Set Aside Savings
You can open a bank account in your child’s name. It is always a good idea to start as early as possible so that by the time your child is a teenager, you have made enough for your offspring. Most parents set up savings for their child’s wedding or a college fund. You can do the same. If you have more than one child, you may need to plan and divide money before your children are born. Delaying the process can make it hard for you to save enough.
Your health can worsen, you may get laid off, or perhaps your child is old enough to utilize that money. Specific insurance policies like life insurance can also come in handy. If you pass away unexpectedly, your child will not be left without money. Your assets will automatically go to your child; once they are legal adults, they may use your property independently without the state’s interference.
3. Teach Your Child Useful Skills
Your child needs to know how the world works. At home, you should try teaching them age-appropriate chores. As they age, you may start giving them more responsibility and the space to learn. These include cleaning, cooking, putting away laundry, and how to keep their area clean. You should also teach them how to check for faulty wires and basic plumbing and ensure that a stove is left turned on.
When you are out in the market, you should involve your child in purchasing goods, give them minimal pocket money and guide them on how to buy what they need to a budget. You can make a fun math game and quiz them on addition and subtraction. Teenagers can also purchase groceries for you and learn how to drive. These are all vital life skills, and if you shelter your offspring or keep them from knowing them, it will only distress them in the future. Once your child is thirteen years old, they can learn about tax forms, filling hospital forms, or starting their independent bank account.
4. Buy A House
Renting a property is not the same as buying property. You automatically get removed from the lease if you cannot pay your rent. A purchased house doesn’t work the same way. You own the establishment either by buying in one go or through a series of mortgages.
Your child will only need to pay land tax and utility bills once they inherit your house. A few years down the line, if they wish to sell your home, they can do that easily by listing your property with a real estate agent, and if the house sells, they will benefit from the payout. So don’t deprive your child of the comfort of a home as they grow up.
Final Thoughts
Your child has a right to a stable and healthy life. With so many uncertainties worldwide, fearing for your offspring’s future is natural. However, as a parent, there are certain factors you can control to empower your child to stand on their feet. Start by consulting a lawyer and setting up a trust. Once you detail your child’s inheritance, you can save your assets from going to the state and being distributed haphazardly. You should also set savings aside to help your child have money for themselves once they are of age. Teaching your child valuable skills like household chores, budgeting, and spending money can prepare them to live independently.
Finally, purchasing a house and giving your offspring a permanent residence in your name is the most effective form of security you can provide them. A place will stay with your child indefinitely until they are ready to give it up.
