Friday 21 July 2017

Parents: Will Your Property Protect Your Kid's Financial Futures?

Every parent wants to protect their kids for the future. That’s what being a parent is all about. While your legal obligation may end at eighteen, it’s still nice to know you can help them well into adulthood. After all, your love doesn’t get less as they get older. If anything, their place is your heart cements more and more as they grow. That’s why many parents take steps to ensure their children are well cared for in later life.

How they do this varies from family to family. Some parents are in the fortunate position of putting aside a trust fund to hand over when their child reaches 21. Others are even able to help them with a deposit for their own homes. But, some of us don’t have the money to afford such luxuries. The good news is, that doesn’t mean you won’t have anything to pass down. Instead, it’s important to think about the investments you’ve already made. Top of the list for most people is their house. A roof over your head if the most valuable commodity, and that’s not only because of the security it provides. Let’s be honest; there’s a lot of money in it, too! But, home ownership doesn’t create instant security for your kids. Taking these steps, however, could.


In truth, the majority of us are paying off our mortgages well into our later lives. But, paying the debt as fast as possible has the benefit of allowing you to take control of your retirement, and provide for your children. If there’s still a hefty mortgage when the property goes to them, they’ll have to sell to pay that off. Don’t leave them in that position. Research tips and tricks about paying your mortgage as fast as possible, and get to work.


Another fantastic step you can take is to increase the value of your home. You want that house to earn as much for your kids as it possibly can. It may well be worth a fair amount as it stands, but every penny counts. So, it might be worth doing a little improvement work during your lifetime. In the short term, this benefits you, too. You get to enjoy any additions you include! Renovating an attic or basement could see a major return. Kitchen renovations are also a fantastic way to increase value. Bear in mind, though, that they don’t have quite the same long-term impact.


All the above points will be worthless if you don’t leave the property to your kids in your will. It may seem morbid, but it’s the only way to ensure your efforts pay off. As your children, they do have some legal standing anyway. But, to avoid family disputes or confusion, you should outline your desires. An even amount to each child is the best course of action. That way, they can sell the house, and hopefully use the money to buy their own.

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