What you doing for the family’s financial future?

A drawing of a father with two children talking about financial future

Savings

MoneyPlus Features Team

17th June 2013 at 4:27pm

Conscription was not introduced until 1916, so in the early days of WW1 propaganda posters were important recruitment tools.  This, one of the more famous ones, was created in 1915 by Savile Lumley and brilliantly fuels the feeling of guilt that those still at home might have felt.  The feeling that, while others risked their lives for the war effort I was sat at home, albeit looking out for my family.

Do I bear my own responsibilities well?

As another Father’s Day passes it’s a good time to reflect on my own sense of paternal responsibility. Am I a responsible parent?  Have I done my bit to ensure my family’s future is certain?  OK, it’s not as dramatic a scenario as Lumley was portraying but it’s vital that we consider how best we can plan for what might lie ahead for our children because planning and making small sacrifices now can pay back significantly in the future.

Further education and home deposits are amongst the costs parents feel they need to be ready for – not to mention the cost of weddings, first cars and the likes.

There are no crystal balls.

Because no-one knows what the future holds, one option might be to consider creating a Trust for your children. These can also be geared towards inheritance and are a good means by which to reduce the potential burden of Inheritance Tax.

One of the attractive features of some Trusts is that access can be controlled by the Trustees (that’s most likely you) allowing you to decide who gets what, when and how.   So, if you’re uncertain of how and when you might need access to funds for your children, Trusts can be a good option because they essentially buy you time before having to make decisions on how to distribute the proceeds.

The range and benefits of Trusts that are available is explained in simple terms on this excellent Government website.

It’s something to ponder in the aftermath of Father’s Day.  After all, as the old saying goes, failing to prepare is preparing to fail.

Daddy, what are you doing for your family’s financial future?