Life after Death

An interesting conversation with my best friend last night started whilst discussing the variable nature of the 8 week old who has invaded her house, and much to her surprise, (said child also being the first) totally turned her life upside down. What started out as our usual light and breezy catchup spiralled quickly into a serious, and rapid, planning session when I blithley asked her if she'd updated her will, and had a Power of Attorney and insurances organised to support the major changes that had occured in her life in the last year - namely marriage and newborn.

"No" was quickly followed by OMG!

The impact if anything were to happen to either partner (or both) would be significant not only to the immediate family of mum, dad and child, but also potentially to their support network - grandparents, aunts, uncles and friends.

Most of us consider what might happen if mum or dad were no longer around, but who will take on the responsibility & cost of raising this child  - as you would want them raised - if something were to happen to both parents? Unfortunately these events do happen, and more and more grandparents in particular, are finding themselves starting again, raising young children and guiding them through their education until at least age 18, at a time when they were expecting to have more time to themselves and take life a bit easier. Even more sadly, if the parents didn't have appropriate insurance and clear wills, this can also become an increasingly stressful time as the guardians seek to cover the costs of raising a child when their income levels are dropping significantly - sometimes with a pension only.

Needless to say, my friend has a list of things to do today.

She and her husband need to:

• think about who they would be comfortable with raising their son
• make sure that person is aware of what their preferences for his life are, and is prepared to take on this awesome responsibility
• also consider how to protect the financial legacy left to their son if they are unable to raise him. You want to be absolutely certain that the funds left are used to the benefit of the child.
• Get Life/TPD, Truama, and Income Protection insurances sorted out so that if an unexpected event occurs, money is not one of the issues they have to deal with
• Gather a list of what they own/owe, and talk to a solicitor about how that should be distributed, taking into consideration all the possible combination of events
• Organise an Enduring Power of Attorney with medical clauses to ensure that control of their assets remains in their hands if one of them is incapacitated.

Our sole focus today is protecting this precious child and ensuring that his future is well cared for.

If you have young children in your extended family, speak with the parents, or show them this blog if that's easier, and encourage them to consider everything we've discussed. 

Take 5minutes in your busy day - think about what you may need to do, then start - today.
If you would like some help with that just let me know.

Kerrianne Hebinger

Financial Planning Essentials

e: fpe@finplans.com.au
w: http://www.finplans.com.au