The Different Ways to Secure Your Children’s Future

Nothing is more important to a parent than the wellbeing of their children. It goes without saying that you will want your child to have a healthy and financially secure future, and to ensure that they are well looked after, even if something were to happen to your and your partner. To ensure you can offer them just that, find out the different ways to protect your children’s future.

Find the Best Life Insurance Policy

Have you thought about what will happen to your property if you and your partner were to pass away? The last thing you will want is for your child to move out of their childhood home and away from their school district. Life insurance can, therefore, provide the financial protection to ensure your child cannot only remain within the home with a legal guardian, but that they inherit the property, which can secure their financial future. If you do not currently have a policy in place, it is essential to learn more about the life insurance cost to protect your children.

Secure the Best Rates with a Prepaid Tuition Plan

Are you worried about rising university fees? If you want to ensure your child has every opportunity in life, you should consider a prepaid tuition plan for your son or daughter. This allows parents to lock in their child’s tuition at today’s rates, which will most likely be a lower rate in comparison to ten years’ time. You might also be surprised to learn that most US states allow you to use the prepaid tuition plan at any US school, including private colleges. So, it is a smart way to secure your child’s education and future.

Open A College Savings Plan

If you don’t have the money to invest in a prepaid tuition plan, you should consider opening a college savings plan instead. Many companies allow parents to pay a direct deposit into their child’s savings account each week or month, so it is a simple and effective way to automate your savings. Therefore, you will be less likely to spend the money on items or services you don’t want or need.

Designate Legal Guardians for Your Children

While you might not like to think of a time when you will not be with your children, you must seriously consider how your son or daughter will cope if you are no longer in their lives. To ensure your child ends up in a loving home if you pass away, you should request for an attorney to draft a will to name one or more legal guardians for any minor child. The designated guardians will be legally responsible for raising your son or daughter until they reach the age of 18 years old.

It will be a legal guardian’s responsibility not only to care for your child, but to make decisions regarding their health, safety, and upbringing. It is, however, vital to consult a potential guardian before you draft a will, so you have the peace of mind that they will happily accept responsibility for your children should the worst happen. It is also a wise idea to name two successor guardians, if one person is unable to care for your kids. What’s more, you can also name another loved one to oversee your children’s finances.

Create a Living Trust to Share Your Values & Beliefs

A living trust will provide an opportunity for you to pass on your values, ideas, goals, and morals to your child’s legal guardian. This information can then be imparted to your children and can determine how they are raised by a loved one. It is also possible to customize the living trust to detail your thoughts on their education, religious beliefs, and academic goals. You can also share your favorite, books, movies, hobbies, or interests, or can mention special moments shared with the family or personality traits you adored in your children. This knowledge can confirm to a child how much they were loved by a parent, which can provide them with emotional comfort throughout their lives. It will also allow you to play a role in your kids’ future when you can no longer be there.

Build a Trust Fund

A trust fund is an intelligent way to secure your children’s financial future. The trust can protect all property and assets you intend to pass onto your kids, regardless of their age. The trust can also prevent an adult child from gaining access to the assets until they mature enough to handle the fund. The biggest decision you must make is selecting a trustee, who will manage any assets and make distributions as per the detailed instructions with the trust contract.

Appoint an Up-to-Date Power of Attorney

You are a big part of your child’s future and can determine the course of their life. You will, therefore, want to be there for your children as much as possible throughout their life. You must ensure you have an up-to-date power of attorney, as they will have control of your finances, bills, and healthcare should you be unable to express your own desires.

For this reason, you must choose a trusted loved one to become your power of attorney, who will make decisions regarding your medical treatments, finances and life support. While it is a difficult subject to consider, it can ultimately protect your health, estate, and family. So, appoint a power of attorney now to avoid the wrong people making decisions on your behalf, which could negatively impact your loved ones.

Conclusion

There are a variety of ways you can secure your children’s future, from opening a college savings account to starting a life insurance policy and trust fund. Your proactive approach to your child’s future could help them lead a long, healthy, and happy life, which is all any parent could want for their children. So, follow the above tips to sleep peacefully at night knowing your kids’ future is protected.

Do you have any top tips on how to protect a child’s future?

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Thank to Carol Trehearn