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Owning assets and having children are two of the main triggers in life for ensuring your affairs are in order. Although having offspring tends to deplete your finances somewhat.

The following is a checklist of some basic legal and financial housekeeping. If you’ve thought about all of these points then you’re probably in good shape:

Will

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• Do you have an up to date will? Dying without a will often causes huge problems.
• Does your will have Trustees who will run any “children’s trust”?
• Do you have adequate trust terms? Otherwise a child will inherit at age 16.
• Have you appointed guardians to look after your children if you and their other parent die?

Family finances

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• What is your approximate monthly income and expenditure?
• Where could you make cuts if you needed to?
• Do have an adequate emergency fund to cover about six months basic outgoings (including nursery/school fees)?
• Are you happy with the level of cover (life, critical illness and income protection) if you or your other half die or cannot work? This can be cover you have taken out or is provided by work.
• Have you thought about building a “medium–longer” term savings “pot” using cash, investments and pensions?
• Are you saving anything for the children and is this being done as tax efficiently as possible?

 

Continuing Power of Attorney

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• Do you have a Continuing Power of Attorney in case you were incapacitated?

 

Inheritance Tax (IHT)

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• Do you need to think about IHT planning? Cohabitation and marriage are treated quite differently.
• Saving for children, or setting up a trust for them, can help with IHT mitigation – gifting by grandparents can be beneficial for income tax too.

 

Thinking of moving house?

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• Do your homework on the market and costs for your purchase and sale as soon as possible.
• What mortgage can you get and, equally importantly, afford?
• You will need to revisit your overall finances and life/income and CI cover.
• Are there any tax implications in your sale?

 

Lastly, your financial and personal circumstances will change over time so it is very much “hitting a moving target” to keep them up to date. Generally, a review every couple of years might be advisable. It may be that no action is actually required but then at least you have the peace of mind of knowing that all is in order.