Planning for and protecting your family

Author: Proposito Team
Published: 9th September 2009
Categories:

Day 3 of Financial Planning Week and the theme is “Young Families”. Are you confident your financial planning takes into account both your own and your family’s goals. Are they adequately protected in the event of something happening to you?
According to a YouGov survey commissioned for Financial Planning Week more than 50% of the respondents said their family, partner or dependants would struggle to some extent financially if they were to die prematurely. And if they suffered a long term illness or incapacity, almost 75% indicated that they would struggle all of the time or at least some of the time. People are clearly ignoring this important aspect of financial planning and are not putting into place the right levels of protection for their families.
The same survey also found that only 31% have made a will, and of those that hadn’t 49% said it was because they had not got round to doing it yet. Regardless of how much money you have , having a will is key to ensuring your families security in the event of your death. Unmarried partners cannot inherit from each other if there is not a will, so partners could end up with nothing.

It is a common misconception that if you’re married your assets will automatically pass to your spouse upon death. This is not the case. Should you die without a will your estate will be distributed under the rules of intestacy.

As part of your will you also outline your children’s guardian, so you can be confident they are with the person you have chosen. Having a family is a huge commitment and it seems many people are simply ignoring vital aspects of planning and protecting.
Check out the Financial Planning Week Website for some great hints and tips for young families http://www.financialplanningweek.org.uk/financial-planning/young-couples-and-families.cfm