Hatching a Plan for your Hatchlings

Most parents will know that the joy and warmth that surrounds the time of announcing a baby on the way also comes with a large amount of financial stress and preparation - be it a surprise or planned pregnancy, the lead up to the arrival of a new child is not an inexpensive affair. As much as you may plan for it, there will always be unexpected costs that follow a child, never mind the added emotional stress from the process of becoming a parent in itself!

This is why it is important to have a financial adviser who can help to assist you in the management of your finances and affairs, should these need to be adjusted to prepare you for your transition into parenthood (or to help you to plan if you hope to become parents, but can not afford it). Here are some important aspects that we like to go through with our clients.

Wills & Estate Planning

• What happens if I don't have a Will? Why do I need one?

• What changes do I need to make to my will now that I have a child/children? (And if I don't already have one - what needs to be included?)

• How do I protect my minor children upon my death, and how can I create provisions for this?

These are some common questions that our clients arrive with when a baby is on the way. The importance of writing a Will is stressed in various circles throughout adulthood, however updating your Will is not as often addressed - and is just as important, especially when any personal or financial circumstances are making a change.

We advise and assist our new (or soon to be) parents in the process of drafting or updating their Wills, and explain the value of testamentary trusts - a Will clause that protects and secures certain assets that are to be passed down to any children that happen to be minors at the time of your death. If you have minor children, not making provision for a testamentary trust can lead to problems and unintended consequences after your death. This being said, there are certain formalities which must be met for the trust to be created on your passing, so speaking to estate experts (like ourselves) is very important when drafting your Will.

Another important area to look at is that of guardianship. What is a guardian? And what is the significance of one? This person will be responsible for every aspect of raising and caring for your children in your absence.

It is important to understand the gravity of the role this person will be taking on and to have an earnest conversation with your partner before approaching the person/people that you would like to appoint as your child or children's guardian/s. If you have decided on a testamentary trust, this also needs to be considered and discussed when appointing a guardian, as well as making room for provisions for the guardian/s of your child within your Will. Remember that a guardian can reject the role you ask of them, and may do so if they are not financially capable to sufficiently care for your child. However, through the appropriate conversation with your adviser and a decision on a life cover plan that suits you, your partner and your family, you can provide your partner, children and their guardian/s with all of the financial means to protect the survivors financially as if you would have.

Education & Future savings funds.

Another financial concern for new parents is that of your children's future education costs - these can get extremely pricey even before the tertiary stage, and education has become an increasingly large financial burden for many households.

Most families can not afford to educate their children on their monthly salaries alone anymore, and a savings plan is needed in order to prepare for the day your little one starts their schooling career.

One of the top 3 tips when preparing for your child's education plan is to see an investor who can aid you in the process. Our advisers will help you to decide what type of investments and trusts may be put in place for an education fund that is best for you, and what the benefits and drawbacks of each of these might be.

Be it a Registered Education Savings Plan, a Tax-Free Savings, or a completely different investment, our advisers will guide you in finding the right solution for your situation.

From there, we will manage and monitor your portfolios, ensuring that your money outgrows inflating school prices (which has been outgrowing general inflation in recent years) and informing you of any changes or adjustments you can make to improve on your return and make the most out of the money that will give life to your child's future.

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Are you, or, do you know anyone, planning for children or do you have a child on the way that you want to financially prepare for? Owing to our present blog series - "Matching, Hatching, Detaching and Dispatching", we are currently offering 10 couples a free first-time consult with one of our advisers! Get in touch today to enquire and to book a consult with Tony or Gwyn.