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Why a Will is an Integral Part of Your Investment Strategy

There is ‘life before kids’ and ‘life after kids’ and there is very little in between. Once you add a child to the family the way you functioned before will become a long distant memory and you will have to adjust not just the way you live but the way that you plan for your future.

 

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There is ‘life before kids’ and ‘life after kids’ and there is very little in between. Once you add a child to the family the way you functioned before will become a long distant memory and you will have to adjust not just the way you live but the way that you plan for your future.

Children have huge financial implications, from necessities like food and clothing, to schooling and having the extra person on your holiday. So it makes sense that you will have to start going about your financial business a bit differently.

Your investment strategy as a parent shouldn’t just focus on your retirement funds (although this is imperative) but you also need to plan for when you are no longer around to help your children out. Unfortunately death is a part of life, and none of us can know exactly when our time will come. Thus, it’s important to prepare early on and make a will part of your investment strategy as soon as your first child is born.

Here’s what you need to know about creating and having a will in place:

 

The purpose of a will

 

The purpose of a will is to let the government know what will happen to your wealth, property (have a look at our villas in Calpe) and other assets when you pass away. If you don’t have a will in place – the government will distribute all of these in the way that they see fit. Thus, it is imperative that a will is part of your investment strategy to ensure that your children or other dependents benefit from what you leave behind.

 

Legal guardians

 

Appointing legal guardians is particularly important if your children are still dependent on you. This means that you will choose the people who you wish to look after your children should they become orphaned by your passing. It is best to speak to the chosen people before adding them to see if they are both willing and able to care for your kids. In the event of a failure to provide your wish for legal guardians, the government will choose them for you and this may not be the choice that you would’ve approved of.

 

Healthcare proxy

 

A healthcare proxy is when you appoint someone to make medical decisions for you in the event that you are unable to make them yourself. Communicate your wishes in the will should like anything specific and this will lessen the arguments between family members about what they should do for you. You should ensure that the person you choose has the best interests of both you and your children in mind.

 

Power of attorney

 

A power of attorney will have the responsibility of making decisions in the best interests of your children, without being the legal guardians of them. For example, your kids could live with their power of attorney while custody is decided etc. They will also look after them should you be unable to care for them through sickness or something like a serious coma.

As you can see, having a will as part of your investment strategy is absolutely essential to ensure that your children’s future is secure. If you would like more financial advice for ensuring that your family is well provided for with a secure investment strategy, check out our awesome new guide An Essential Guide to Financial Stability for First Time Parents.

 

Image Credit: hvdmattorneys

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