May 10, 2018 by Rebecca Crommelin
Your family is your most cherished asset, and a comprehensive financial plan should support the people who matter most in your life.
Now every family is different, but no matter where you fit into your family tree, it’s important to know that the financial decisions you make today can have a lasting impact on your loved ones – from your ageing parents to your children.
Ideally, each family member should be factored into your financial advice process, allowing your whole family to benefit from expert advice through every life stage.
Supporting children from infancy to adulthood
Every parent wants to protect their children, however it’s surprising just how many families don’t have guardianship plans in place for their kids.
What this means is that if both parents passed away unexpectedly, a child can be put in the painful situation of being shuffled from one well-meaning relative to the next. In the worst case situation, it could also be left to the Family Court to decide who will raise the child1.
Put your Will in place
It’s particularly important to have a Will today as more Australians live in blended families, and it’s vital to be crystal clear about exactly who you wish to benefit from your estate.
Children with special needs require additional consideration, and in these circumstances a testamentary trust is worthwhile looking into, as it could provide ongoing financial support.
A financial helping hand – choose wisely
As your kids grow up, you might be looking to give your adult children a financial helping hand to buy their first home.
There are a variety of ways you can help your kids with their first home, from gifting them all or part of a deposit, going guarantor on their home loan, helping with their loan repayments or even agreeing to be a co-buyer.
Each of the above options can come with significant consequences, and frankly, you need to be wary of your own financial security when making this decision.
This is a situation where financial advice is key – for all parties involved. If you’re considering this at the moment, or if you’d like to chat about options that can help you contribute to your child’s first home purchase, or even pay for your child’s education – contact our team today to speak to our Financial Adviser for strategies tailored to your personal situation and needs.
Ageing parents – don’t wait until decisions need to be made urgently
On the other end of things, increasing life expectancies mean many Australians need to spend time – and often money – caring for ageing relatives. It can be quite an emotional experience, so it’s a time where forward planning can make this tough time less challenging – and more secure.
A great initial step is to think about encouraging your ageing parents to put enduring powers of attorney in place that they are comfortable with, and it makes a great deal of sense to do this long before your parents are unable to make independent decisions.
Without power of attorney in place, you are locked out of your parents’ financial affairs, and it could leave you dealing with expensive bills for their care.
Navigating the complexities of aged care
It’s worthwhile sitting down with your parents and discussing aged care accommodation for the future.
Waiting until nursing home care is essential isn’t ideal, as the cost of this care can be prohibitive. So it’s beneficial to address this issue before the situation becomes an emergent one.
Contact our team on (08) 9485 0090 to chat to our Financial Adviser, Glen Usher, today – he can help you put valuable plans in place to protect your most precious asset, your family.
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1https://www.statetrustees.com.au/how‐to‐choose‐and‐appoint‐a‐guardian‐for‐minor‐children
