Having children is a game changer. You want to do everything in your power to protect your family and provide for them no matter what. But do you have everything in place to protect your family if the worst happens? Have you got life cover? Is your will up to date? Have you discussed your plans with loved ones?
While this is not a happy-go-lucky topic to discuss, it’s a necessary one. Taking the time now to put a few key things in place can save your loved ones enormous stress and uncertainty later. Here are 8 crucial things parents need to prepare in case you die.
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8 Crucial Things Parents Need to Prepare In Case You Die
#1. Talk to Loved Ones
Getting your affairs in order isn’t just something older people should do. Once you become a parent and/or a property owner, it’s essential that you have your legal and financial affairs in order — and that your loved ones know your wishes if you were to become seriously ill or die. It’s worth sitting down with your partner or family to talk through what your wishes would be in different scenarios.
For instance, if you or your partner were to become ill and unable to work for an extended period, or had a medical emergency, or if one or both of you were to die, how would this affect the rest of your family, both legally and financially?
Talking through where loved ones can find important documents, making sure you’re both signatories on shared accounts, and giving them a list of important contacts — your solicitor, bank manager, doctor(s), investment or fund managers, insurance companies, credit card companies and so on — can make a real difference in an emergency.
Morbid as it sounds, it’s also wise to discuss funeral and burial or cremation wishes, and to let loved ones know if you’ve signed up for organ donation.
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#2. Arrange Life Cover
Life cover is a fundamental protection to have in place, for a whole host of reasons. Don’t confuse Life Cover for family protection with a Mortgage Protection policy.
Mortgage Protection is usually required by a bank to ensure your home is paid off in full if either owner dies — it protects the lender as much as the family. What’s left over for a family to live on afterwards?
A separate Life Insurance policy should be in place to cover future education costs, living expenses and the replacement of a homemaker’s or income earner’s contribution in the event of a premature death. It’s often a lot more affordable than people expect, and it’s essential for the future financial security of a family with dependent children.
#3. Write a Will
Do you have a will? It took years after the birth of a first child for many parents to get around to making one — often because it’s easy to underestimate how important it is. Here are some of the top reasons to get a will in place.
1. It makes life much easier for those left behind.
2. You get to say who will look after your children if they are under the legal age to be left alone. Without this in place, they could end up in the care of the state or with a relative appointed by the court. Do talk to the person you’d nominate, so it isn’t a complete shock to them.
3. You decide who will benefit from your estate — and just as importantly, who will not.
4. It speeds up the probate period.
5. You get to choose the executor of your estate.
6. You can leave donations to causes or charities you care about.
7. It can reduce the cost of inheritance tax for your loved ones.
#4. Look Into Trust Funds
Looking after and providing for your children matters to all of us. Putting financial cover in place for them, in case you can’t provide for them yourself, makes real sense.
Deciding how and when they receive those funds is also important — by setting up a trust fund, you get to decide how that money or those assets will be managed and released over time.
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#5. Decide Who Will Look After Your Children
Although it’s unlikely to happen, have you made arrangements with relatives or friends for the event that you and your partner were to die while your children were under 18?
Left to chance, your children could end up with a relative they don’t feel close to, living somewhere far from everything familiar, or as a ward of the state.
Talk it through with your kids, if they’re old enough, about who they’d feel comfortable with. And talk to the relative or friend you have in mind, to make sure they’d be willing to take on that role. Put everything down in your will so there’s no confusion later.
#6. Know Your Entitlements
After a bereavement, families may need financial support, and may also qualify for help with funeral costs. Knowing what benefits and entitlements are available following a death is useful for the surviving spouse or guardians, should the worst happen.
Are you aware of what your employer would provide if you died while still working there? It’s worth finding out what death-in-service benefits your employer offers and researching what you’re entitled to, so you can consider whether additional cover is needed to fully protect your family’s needs.
In Ireland, families may also be entitled to state support following a bereavement, such as bereavement grants or widowed parent payments — but eligibility and rates change, so check current entitlements directly with the Department of Social Protection or on gov.ie rather than relying on older figures.
#7. Review Investments
You should keep a list of valuable items and assets you own, with a note in your will of how they should be distributed. Review this list regularly as you make new purchases or sell things on.
It’s also important to review pensions and other policies that will pay out on your death, to make sure the beneficiary details are up to date. For instance, who’s listed as the beneficiary on your very first pension scheme? You may not have had a partner at that time, so it could still be listed as a parent — or you may not have had children yet, or only one, so others aren’t included.
The same goes for bank accounts — do they automatically transfer to a nominated person on death, or would they go into probate?
#8. Review Everything Regularly
It’s a good idea to review your will, investments, accounts and insurance policies every couple of years, or more often if your circumstances change — a new baby, a house move, a new job. Arrange to have everything reviewed with your financial advisor and/or solicitor on a regular basis.
Hopefully you’ll live to a ripe old age and see your family grow up and have families of their own. But it’s good to be prepared for whatever life brings.
Have your say — have you made arrangements for your children in case you die? Share your thoughts with us in the comments below.
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Not ready to tackle all 8 steps today? Bookmark this article and come back to it — even ticking off one or two of these each month makes a real difference to how protected your family is.
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Frequently Asked Questions
Do I really need life insurance if I already have mortgage protection?
Yes. Mortgage protection only pays off your home loan — it doesn’t leave anything for your family to live on. A separate life insurance policy is designed to cover ongoing living costs, education and childcare, so your family has income to rely on, not just a paid-off house.
What happens to my children if my partner and I both die without a will?
Without a will naming a guardian, the courts decide who looks after your children, which could mean a relative you wouldn’t have chosen, or in some cases state care. Naming a guardian in your will is the clearest way to make sure your wishes are followed.
How often should I update my will and insurance policies?
As a general rule, review them every couple of years, and immediately after any major life change — a new child, a house move, a marriage, separation, or a change in your financial situation.
Where can I find out what death-in-service benefits my employer offers?
Ask your HR department or check your employee handbook. It’s worth doing this now, rather than assuming, so you know whether extra life cover is needed to fully protect your family.
What state supports are available to families in Ireland after a bereavement?
There are various bereavement-related supports available, but rates and eligibility change over time, so check gov.ie or contact the Department of Social Protection directly for current, accurate information.
