Posted on: 9th Jul 2019
You will not get the immortal privilege of living here on earth forever, it is important to come to terms with this. Hence, as parents, you should certainly go ahead to make formidable and foolproof plans for your loved ones (most especially your children). One of the best ways to ensure that your kids do not lack anything is by intentionally and swiftly setting up assets in the form of estates and trusts.
As if coming to terms with the fact that you won’t get to be around forever isn’t enough, parents go through a lot trying to conceive and then subscribe to the best ways to leave behind assets for their kids.
So how do you set up assets/estates for your children? Some of the ways to do this include;
A will is one of the oldest but most efficient ways to leave assets to your children and divide your estate among them. It is a legally binding document stating how your assets will be shared. Some wills dictate in complete detail how assets will be split to the last penny while others can be very brief and straight to the point. A will exists primarily to manage your assets and assigns them to the parties you intend to benefit off of it. However, a will ultimately caters to young adults or at least children who have already come of age.
For children who are minors, setting up a trust would be more reasonable. Children who aren’t up to an age where they can manage their own finances should have trusts set up to their benefit. You can do this by selecting someone you can trust to handle your money on your children’s behalf. The person who could be a family member (or not) is referred to as the trustee and is meant to manage your estate until your children come of age (18 years) or an age specified by you. A parent(s) can set up trust funds with special clauses such as disbursing varying percentages of monies at different ages of their child/children. This is in order to ensure that children/young adults are not overwhelmed by the amount of money passed down when received in bulk.
This works in a very simple way. While you take your time to set up proper and legal forms of estates for your kids, what you can do right away is to assign power of attorney. Power of attorney gives someone expressly appointed by you the power to handle your assets should something happen to you. So whether you are deceased or permanently/temporarily incapacitated, the person assigned with your power of attorney gets to accomplish your bidding and that includes disbursing estates and trusts to your children.
Life insurance is still one of the surest ways of setting up estates for your children. At African Alliance PLC, we have a variety of life insurance policies that encourage setting up estates for your children. These estates are meant to aid your children in all their endeavors and one of such is their education which remains paramount. This is why the Child Education Plan is so important. This plan helps you set aside money for your children’s education (through regular premiums paid) whether you’re alive or not with bonuses guaranteed. Check out this product here: CHILD EDUCATION PLAN.
In setting aside estates for your children, money is always a good place to start. However, assets left in an estate can also include other things like properties, shares and so on and so forth.
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