Most parents hate the idea of their kids being left with nothing when they eventually pass away. Instead, you want the money you have worked hard for to go straight into their hands, be it in the form of cash or assets.
But, with taxes and other fees, it can be very hard to see this happening with your funds. Unfortunately, to ensure that your kids get the most they possibly can, you have to do some work. To help you out, this post will be going through some of the best ways to leave a legacy for your kids. It’s best to start as early as possible with something like.
In some cases, people will start long before they even have children.
One of the best options you have regarding a legacy for your kids is property. Unlike cash, it’s very difficult for a home to be chopped up by the taxman. Instead, your kids will only have to pay a little bit towards their new home.
Of course, a home isn’t exactly cheap. But, this shouldn’t matter. Most people will want to own their own property by the time they have a family, anyway.
So, this will probably fall in-line with your normal goals.
If not, you can look into other options to give your kids something physical when you pass. Other high-value items include gold and other precious metals or gems. But, these won’t be anywhere near as secure as property or the other options on this list.
Along with investing in property, you could also consider some other investments. There are loads of methods to store your money which will result in passive income generation.
For example, if you invest in the shares for a business, you will be able to take a slice of their revenue once they’re making money.
Or, if you invest in stocks, they could be sold at a later date for a lot more than they were bought for. Bonds also make great investments to pass down to your children, as they are almost entirely risk-free. These sorts of investments don’t only benefit your kids, though.
Along with leaving a good legacy, they could also help you to make a little bit of extra cash each month. This will help you to save even more, or spend something on yourself once in awhile.
- Life Insurance
This next option is arguably the very best for leaving a legacy for your children because it’s designed to be used in this way. Life insurance is built from payments which are made throughout your life. Then, when you pass, the money will be given to your kids.
This will be entirely tax-free, ensuring that they get every penny of it. And, it can be a great way to give them more than you’ve saved. 500k life cover will rarely ever cost you half a million, even after years of putting money into it.
But, through investing your money, the company providing it to you will be able to guarantee that your kids will get the full amount.
It’s best to start this sort of policy early, as you will be expected to contribute a large percentage of the funds. So, the earlier you start, the smaller the monthly payments will be.
A lot of young people struggle with money. The skills required to balance a bank account aren’t taught in schools.
So, people have to learn these skills for themselves. This is alright for some. But, for others, more help will be required. From an early age, your kids can be exposed to money and the decisions that come with it.
You can teach them to look after the small amount of money they have. And, you can help them to be responsible with it when they have more. Very few kids have a true understanding of the value of money. But, this is something which can be taught quite early on.
A lot of parents encourage their kids to get a weekend job once they’re in their early teens. This will teach them what it takes to earn money, and what money is worth regarding hard work.
Hopefully, this post will inspire you to start working hard on the legacy you leave your kids. A lot of parents don’t put this sort of effort in. But, it can be an excellent way to give you kids a great start in life. And, it means you can rest assured that they’ll be looked after when you’re gone.