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Having a child is not only a wonderful experience, it can also be a little terrifying. Your whole life is about to change, and this might take some getting used to. However, if you have prepared for the birth, the transition will be much simpler and you will ease into being a parent in no time. Writing (or amending) your will is one thing to think about undertaking before the arrival of your little one. Below are some things to consider when doing that.
If something happens to you and your partner, then who would look after your child? Even though this is an unpleasant thought, it is something you need to think about. Having a will stating who will become guardian to your child will prevent the courts from getting involved, and would give you piece of mind knowing that your child would be left in the care of someone you trust.
Tax is also not a pleasant subject, but it is essential that you know all the information before including your child in your will. If you are married, then your spouse or civil partner is exempt from paying tax, however this rule does not apply to your children.
One of the ways of getting around inheritance tax is to create a trust fund for your child. This will allow for any assets or property that you leave your child to be properly managed until the child is old enough to take responsibility for it. Putting your assets into a trust fund can reduce the inheritance tax payable for your child. The law considers money held in a trust fund as separate to that of your estate, so the value of the trust will not be included in your estate when the inheritance tax bill is calculated.
These are just some things to consider when making a will that can prevent problems from occurring later in life. Specialists advise that you contact a solicitor who can help you ensure that all areas have been covered.