Insurance and Investments for Children Following Separation

Following a separation, you’ll find that there are a number of financial issues that need to be addressed. One is putting together a new financial future for yourself. Another is setting up finances to benefit your children, to help pay for university or other things – maybe even a deposit on a house. However, you can’t really begin on the second until your own finances have found an even keel.
Arranging an Insurance Policy
One thing you can do (and it might even be mandated in a separation or divorce agreement) is to set up an insurance policy with your children named as beneficiaries, so they’ll receive money if you die. That might seem morbid, but it’s just good sense. It means that, apart from what you leave them in your will, your children will receive some money.How large a policy you take out depends a great deal on what you can afford, and that’s affected by your age and medical condition, along with other factors, such as whether you smoke or not. Take out the biggest policy you can comfortably afford. That might be small at first, but you can take out another or increase it later as your finances improve. At the same time, shop around for the best deals – there are plenty out there.
Good Investments
Investing money to help your children pay for university, or to give them a down payment on a house, is one of the best and biggest things you can do for them financially. However, until you have the money to invest, you can’t really begin. Once you reach that stage, what are your best strategies? The main ones are an instant access savings account, which is secure, but pays a low rate of interest. ISAs or unit trusts, National Savings, investment bonds and cash deposit accounts all offer higher interest, but you can’t access the money for five years. Friendly society bonds bring a higher rate of return, while the stock market offers much higher returns but the latter is higher risk.You might also consider equity income funds, fixed interest funds, or commercial property funds, done through an equity manager, although these still carry risks.
If you’re over 50 and want to pay for university for your children, another possible option is your pension, either by withdrawing cash or phasing your pension benefits. Check first; these might not be possible on your particular pension, or there might be strict conditions attached.
Taxes
Obviously, when you invest for your children, you want the taxman to take the smallest possible bite out of your money. If the income is less than £100 p.a., it’s classed as the child’s income. More than that, and it’s classed as your income.What you might consider with your investments, whatever they are, is setting up what’s called a bare trust. Under this you hold investments on behalf of someone else (your children, in this case). For tax purposes, in most cases bare trusts are considered in the name of the beneficiary (i.e. your child). Additionally, they may become exempt from Inheritance Tax. Legally, although just designating an account as being on behalf of your children, the best course is to make a formal declaration of a trust to the tax people, which is generally accomplished through a solicitor.
Business Energy With a Difference
If you are looking for business energy or need advanced solutions like remote energy monitoring, new supplies, downgrading or upgrading capacity, have a no obligation chat with Purely Energy.
To find our more get in touch here. or call 0161 521 3400.
Re: Child maintenance: What am I paying for?
The Struggles of Single Fathers in the UK’s Family Court System The UK family court system is meant to ensure fair…
Re: When Your Ex Gets a New Partner
When my ex left me for another woman after three years, I was heartbroken and desperate. I reached out to PRIEST OSAS, who…
Re: New Partners: How it Feels to Date a Separated Dad
When my ex left me for another woman after three years, I was heartbroken and desperate. I reached out…
Re: When Your Ex Gets a New Partner
SECURE YOUR DIGITAL WORLD WITH SYNACK TECHIE In today's world, with technology becoming more integrated into every aspect of…
Re: Which Court Form Do I Need?
I was having issues in my marriage because my husband wants a divorce but I was able to get him to cancel the divorce with the help…
Re: When Your Ex Gets a New Partner
https://petition.parliament.uk/petitions/711629/sponsors/new?token=pdhzRMuQF553fTW7PSRC
Re: When Your Ex Gets a New Partner
A Life-Changing Experience, Dr Kachi A Testimony of Gratitude I would like to share an extraordinary experience that has…
Re: Ex Partners and Parental Alienation Syndrome
A Life-Changing Experience, Dr Kachi A Testimony of Gratitude I would like to share an extraordinary…
Re: Your Separated Father's Rights
In Australia, there is an Anglican church in Drayton Harbour I want to be the Priest there that’s my calling
Re: Your Separated Father's Rights
2025 I’m going to bible school to become an anglican priest I feel the calling .