Now that the royal baby has arrived, William and Kate will be dealing with many of the issues that all new parents deal with – late night feedings, diaper changing, potty training, etc. After all, they have expressed their intention to be hands-on parents. I wonder if after a few months of sleepless nights and spit up, they change their minds. (Having been a hands-on parent, myself, I can certainly see the benefits of royal life!) But they must also be thinking about what every parent undoubtedly thinks of: who will care for their little prince if something unforeseen happens to them. And who will watch out for his financial well-being.
Now I imagine that Will and Kate do not need to worry themselves much with the financial well-being of their new baby. And they may or may not have much input as to who would raise the little guy in the event of their untimely demise. But what about your own little prince or princess? Have you given much thought to who would care for your own royal baby and who would guard over his or her assets?
To protect our own offspring, we need to make sure we have, at a minimum, a will and trust. A will allows us to name a guardian to care for our children in the event of death, and a trust allows us to give our assets to a trustee who will guard the trust assets and use them for the benefit of our children under terms that have been dictated by us in a private trust agreement. A trust is essentially a document that tells the trustee when and how to give the trust assets to our kids and when it is okay to use the trust assets for their benefit. And you don’t need to be a royal to have a trust. Most couples with a home, life insurance and retirement assets will benefit from having a trust for their children in the event they both died. So mark this royal occasion by getting your own affairs in order and making sure your own princelings have been properly provided for!