As you take on a new parental journey, it is a brand-new beginning and your responsibility increases. There is a need for you and your spouse to write a Will. So here are some reasons why young parents need a Will:
1. Your child depends on you.
Your child depends on you. Unless you are irresponsible, you will want to earn more money to make sure his or her future is taken care of. However, there are many unforeseen circumstances beyond our control. For example, what happens when both parent pass away due to a common disaster? How do you want your child to be taken care of? A Will can make sure that this concern is addressed according to your wishes.
2. Who takes care of your child?
If you and your spouse are not around, who will take care of your child? Who will be the better person to take care of your child? All this must be penned down to make sure that disputes on deciding who will be the guardian of the child be avoided. How? Write a Will.
3. You definitely want your child to live well
Like any parent, you will want to make sure your child continues to live the same lifestyle as before. However, you are no longer around. How can you do that? A Will can ensure that you can continue to provide for your child until he or she reaches an adult age.
4. You do not want to spoil your child
You will have bought sufficient insurance coverage, which should be a substantial amount, to take care of your family in the event you are not around. If something untoward happens to you and your spouse tomorrow, the insurance pay-out will be released. It will be given to the guardian or to your child (if you nominate him or her as your beneficiary). Will they be able to manage the funds well? Is your guardian trustworthy? In some scenarios, the pay-out will be held until the child attains 18 years of age. At the age of 18, will your child have financial capability to manage such a substantial sum of money? With a big inheritance given to your child, will he or she not want to work and live luxuriously?
Besides indicating your guardian in the Will, you can also hold the funds in a Trust to ensure your child continues to be taken care of and your funds will not be misused.
5. Locating your assets
When you are not around, will your loved ones know which companies you bought your insurance from? Will they know your about your foreign investments? Will they know that you bought stocks?
According to a Straits time article last year, over 8000 insurance pay-outs were unclaimed.
Your financial assets must be laid out to ensure that if you are no longer around, no assets are left unclaimed.
With a Will properly drafted and having an inventory booklet, your loved ones will not be running around to find out what assets you have.