Having to plan for tragedy is on nobody's 'must do' list.
Yet if we don’t make a plan for the worst-case scenario, we could leave our loved ones not only with heartache but with stress, confusion and a costly bill. This is especially true for parents.
If you have minor children, or children with additional needs, your Will can mean the difference between them being supported and looked after with all the care you would give them or having their fate fall to government rules and regulations.
Here are five reasons it is important for parents to have a valid will.
1. Guardianship Clause
Unfortunately, it is not enough to simply make known to your loved ones who you would want to raise your children and what you are hoping for their future should the worst happen. You need a valid Will to ensure your wishes are met. Without a Will in place, your children could end up as wards of the state until the courts decide who is best able to take care of them. What the court thinks and what you think might not be the same.
As a parent your Will includes a guardianship clause. This clause clearly states who you would like to have taking care of your children should both parents, or current legal guardians pass away. Before naming a guardian, it is important to speak with the person you wish to take on this role and ensure they are comfortable with the arrangement. Having this clause will make it logistically easier for both your children and your chosen guardian.
2. Asset Distribution
Without a Will in place the distribution of your estate falls to the Rules of Intestacy. This could mean that your estate is not distributed the way you want it to be across your children, with a particular impact on any stepchildren you might want to leave something to. Your Will allows you to have more control over who gets what, and potentially when they get it and what happens with that money.
To find out more about the Rules of Intestacy click here.
3. Financial Security
Within a Will you can set up various trusts which will ensure any money or investments are released to your children at specific times. This will aid both your children and their guardians in managing the money you have left. You are also able to note how you wish for that money to be used by writing a Letter of Wishes. Will trusts can provide the peace of mind that your children will be financially secure throughout their lives.
4. Avoid Family Disputes
A Will makes it clear how you want your estate managed and who you want to care for your children. Should any disputes arise among your family after your death, they can be settled quickly and clearly through your Will and any Letter of Wishes you may have written. This works to mitigate any conflicts and helps make the settling of your estate smoother and the difficult transition for your children less challenging.
5. Children with Additional Needs
If you have a child with additional needs a Will is paramount to ensure the quality of their care and financial stability is maintained. You will likely include a Special Needs Trust which helps manage their inheritance without losing access to government funding. In your Letter of Wishes you would note any facilities they use, medical treatments, therapies or schooling you wish for them to continue.
Without proper planning, leaving assets directly to a child with special needs could result in the child losing government benefits or receiving a lump sum they are unable to manage. A carefully crafted Will ensures this doesn’t happen, providing for your child without risking their access to vital programs.
Letter of Wishes
In previous sections we’ve mentioned certain things which would be included in your Letter of Wishes. But what is this?
A Letter of Wishes is a document which works in tandem with your Will. It is not a substitute for a Will and is not legally binding. Quite simply, it explains the things you want to have happen which would not sit within the legal document of a will.
This is where you would lay out who gets certain items like keepsakes and family heirlooms which fall under a certain amount of money. It is also where you would note any specific requirements or wants in terms of your children.
For example, what type of school or education you wish them to receive, religious or spiritual upbringing, extended family members you do or do not wish for them to have contact with, ideals you want them to be taught, sports or extracurricular activities they wish to keep engaging with.
If you set up a trust, your Letter of Wishes is where you note what you want the money to go towards. Perhaps school fees, a car or a house deposit. The trustees of your will would then follow what is in your Letter of Wishes. Though it is not technically legally binding, it is enforceable through the courts should a trustee attempt to deviate from what you’ve written.
The Importance of Taking Action
The death of a parent is profoundly life changing for a child. They will need love, support and stability if this were to happen. This is why you need a Will. Without one there are too many unknowns, too much red tape and a lengthy, stressful process for your loved ones to go through.
It is important that you find a Will Writer with the knowledge, compassion and understanding required to draft this document. Just like Bigmore Wills and Probate can do.
We know these conversations can be tricky. We know the planning can seem confusing. We know emotions can run high. It is our job not just to write your Will but to help you navigate the process by facilitating conversations, educating you on your options and guiding you through the entire process with empathy and assuredness.
If you would like to have a free initial meeting to discuss the writing of your Will, or to assess whether your current Will requires any updates, fill out the contact form below.
Looking After Yourself Financially: The Later Years
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