Need Of Children’s Future Plans
It is the parents who have to plan the future of the children. The planning has to be accompanied with plans of meeting the financial demands. The planning has to be systematic, logical and rational. Planning your children’s future involves :
- Insurance : The best financial instrument till date to counter the financial losses due to perils is the insurance policy. There are also insurance plans to meet the future expenses of your children. These insurance policies also have a rider to cover the accidental demise of the insurer.
- Will : There is no certainty of life, and in this sort of circumstances it becomes necessary that you sate clearly about the management and distribution about your funds and property in your absence. A will is a legal document and everyone related to it has to follow it accordingly. In case of a will being absent , the financial life of your children could be uncertain and in jeopardy.
- Designation of Guardian : In this age of computers and internet there is no guarantee of life and no one knows what is there for him in store in the future. When there is no surety of life, it becomes necessary that there should be someone to take care of your child in your absence. For this you will have to get a will drafted by an attorney, mentioning the name of the person who is going to be the designated guardian and who is going to be the successor guardian. The person responsible for taking care of your children’s financial affairs can be different.
- Establishing a trust : The child may not be legally matured enough to take care of the business or property. It is always better to setup a trust for the betterment of your children’s future. The trustees will have to do asset management as well as manage the funds as per the instructions mentioned by you in the trust document.
- Documents : Take care that the legal documents and the government documents especially with reference to the ancestral inheritance of the property and business are in place and clarified. The ancestral lineage should be clearly mentioned in those documents
- Taxes : Keep into consideration the rules and regulation of the government especially with reference to income tax and estate tax. Seek clarification about the insurance claim being subject to the income tax.
We do not know what is going to happen in future but at least we can try to secure a good life for our children in the future.
