What policies should I get?

I,M_SAD

I am a single mum of 3,aged 17,16 and 2.5yrs.2 ex partners neither really involved with children.

I am very keen on getting my affairs in order with making provisions for the children,I have no idea about how much I should be setting aside each month or what policies to go for.Everytime I start my head keeps racing away with me as I am very conscious I am everything to the children,but I am also looking for some help and understanding before I race to solicitors.Funny how I put off the most important aspect of my life,providing for my children after death.
I have a repayment mortgage,do I need a vehicle to pay off outstanding amount if I die?
I have paid into nhs pension for 22 yrs,do I need to just include that in the will,to be left to children.Will they leave it to my children as opposed to a partner?
I would like to leave some provision of care financially to my 2 oldest,obviously my 2.5yr old would need more but how do you that?
I have some savings,I have a trustfund for youngest which I just pay in £10pm with Family Investments.I am very nervous of doing anything too risky,from what I have seen of statements,I know it,s early days but the amount is less than what I have put in.
Can you make what I consider complicated wills,taking into account of the children,s ages and "no dads"scenario.As in I am worried that my youngest child,s dad may and I mean say step in,to have ds and my 2 oldest left with very little due to their ages.He is not involved but recently has expressed an interest with contact with ds,I don,t have any real money to fight over,so don,t get me wrong but my all my children will go to my sister,I don,t really think his dad will want to care for ds full time,but you never know.I do think though if he ever showed an interest due to him being on birth certificate,he may well be entitled to due to parental responsibilities.I just want to make sure especially after reading a post about someone who never received anything so far from their parent who remarried,but parent had died,it was,nt vindictive ,it was heartbreaking really and as much as my responsibility I think will lie with youngest,if my sister has him,I have no concerns,she is a good woman,but if 2nd,s partner has youngest he will without a doubt ,be cruel to my 2 oldest.Has anybody been in the same situation,or have advice about who to contact with will,s and children?Thank you.

Oscar_The_Grouch

Hi there

I'm neither a solicitor nor an independent financial advisor, so my understanding of these matters is about as good as yours.

Personally, I would be looking for a professional opinion on my finances from an IFA then speak to a solicitor to get a cast iron will. I'm not going to pry into your relationship with the fathers either, but you may want to look as what provisions they are making too; I certainly would be making provision for my kids independently if my wife and I were to separate (but perhaps I'm just odd).

Good luck, but I really do think you should get professional advice rather than relying on muppets like me (no pun intended, honest).

Ian_W

I have a repayment mortgage,do I need a vehicle to pay off outstanding amount if I die?

As you have dependants who are young that is a YES as far as I'm concerned. Even if your kids don't live there the value of the house will help towards keeping them until they're earning themselves.

I have paid into nhs pension for 22 yrs,do I need to just include that in the will,to be left to children.Will they leave it to my children as opposed to a partner?

No but you should read THIS PAGE and consider nominating someone, say your sister if she would look after your kids, to receive the lump sum death benefit of 2x pensionable pay. As you'll see at the bottom children in full time education receive "allowances" from the scheme whilst they are considered to still be dependant. If you're not married your x-partners wouldn't get anything from the pension unless you've nominated them.
I don't know what an IFA could do for you - other than arrange the life insurance but you could do that yourself from Martin's articles elsewhere on the site - but arranging a Will through a solicitor would be a good move. To put it bluntly with a Will you decide where your money goes, without one the law decides using a set formula - which may not be what you would have wanted.
HTH.

*MF*

^ azari2 - reported as spam.

Hi I,M SAD ...

It may be simpler than you think, just a case of taking it step by step ... so, some first very general steps ...

1: What you do will have to be within a budget you can afford. The types of life assurance that may be most suitable are at the cheaper end of the spectrum, and the making of a will is a one off cost - unless circumstances change and you decide to alter it - and from what you have said consider making your sister the executor on your will, and discuss the details of what you want done and what you don't want to happen with her.

2: There is no over-riding need to use an IFA - but were it me, I would consult one, not least because there are ways of writing life assurance "in trust" for specified beneficiaries, and I am guessing that may not be something you feel comfortable doing on your own, and using an IFA working in liaison with your solicitor will help with that. But as suggested - acquaint yourself with the info on this site as well.

3: The types of life assurance that would seem most appropriate relate to paying off the mortgage and either a lump sum benefit that can be used to look after the kids over time (as may be required) or what is called Family Income benefit - which pays out an income each year for a fixed period - eg., until they are of an age to look after themselves. This is why I mentioned writing policies "under trust" - it may help with the age disparities you are trying to address.

4: To make sure anything you arrange is then carried out as you wish, a will is the essential step - and for that you need a solicitor. S/he can help you ensure that - for instance - the pension entitlements you have, go where you want them to.

Hope this helps ...

I,M_SAD

Thank you all for replies.

I do have an IFA I used for mortgage,he is my oldest,s dd,s friends dad,he very nice guy.I just always feel a bit tongue tied explaining things to him and sometimes a bit daunted with my little bit when I go round to his house!!He is very anxious I do a will,he says he will help me and he has been a good emotional and practical support to my 2 oldest.I am very private person in R.L.,he such a good dad I think he finds it strange how my children,s dads unsupportive.I am going to read the policies about insurance I think a bit more.I am thinking of £100 pm for policies and I do want a watertight will,my sister will not discuss money with me at all for children.Her and hubbie very comfortable and I think she feels awkward discussing money as she idolises children,but I want to ensure I am providing for children.It.,s my job!!
I don,t think children will want to keep house,dd going to uni for 5 yr medical degree in London this year,plus my sister only lives about round the corner.I do want it paid off though as at least the money can be used in trust for the children.I am getting it valued next week,I know house prices all over the place at moment but just for a rough guide.I am thinking it,s about £200,000,as house 3 doors away just sold for £210,000.
I have a very unhealthy fear of being ripped off as I bloody hate making money decisions by myself!Plus I have only just got a grip on finances as 2 separations left me pretty broke:rolleyes:.But feel I am getting there a bit now.

*MF*

Suggestions, to think on only, ok ... Ask your IFA (friend) to recommend a solicitor, and maybe that will help you discuss the other matters with him as well, but if you really still feel uncomfortable discussing other things (and I don't think you should be tbh from what you have said, apart from being a friend and support to you - his professional duties require him to give you advice dispassionately and in your best interests) explain how you feel and ask him to recommend another IFA, and then perhaps let him give you a second opinion.

I'm sure you will be fine once you get going. :-))

CLAPTON

Assuming you are still working for the nhs (or even if not), your first step should be to read what the death benefits are... you might be very surprised how generous they are...also check any other insurance that come with the job.

I would suggest you write a simple will.... leave everything to your three children equally. If you make your sister your executor for now I'ld suggest you add that each of your children that are 18 or over should replace her (remember you may not die for along long time).

Similarly for your youngest ... say you want any of your children over 18 to look after their sister.

Check whether you already have life insurance associated with the mortgage.. most mortgage companies push life insurance when you get a mortgage... if not then thats the first essential so your children have a home if you die (you say they won't want the home but what will your daughter do in the uni holidays etc., she may not want to sya with her aunt and as I say you may live a long time)... its normally quite cheap too.

I,M_SAD

Yes still work for nhs,always paid a pension with them.I never thought of dd not wanting to stay with my sister in holidays.She does,nt actually,if she had the choice.I just asked her,nor does ds,my 16 yr old.She does to my suprise want to keep the house on,she says she loves it,we had 5 house moves in 5yrs,so priority making sure mortgage is paid off.Have emailed BS about any protection with repayment mortgage.I am with Unison and they offer free will making if you are a member,so emailed them as well as IFA,emailed my pay department asking for all current details of pension,basically I think I have emailed everyone!

I hope I won,t die for a very long time,but my money,house and pension must be allocated to my children,I know that sounds a bit adamnant but they always preoccupy my mind,I love them to death.I know I am a bit rattled by my ex partner expressing an interest in my youngest and that,s great,I think:rolleyes:,but according to my friend,s sister at a party the other night,she was talking very generally about wills and children,s provisions,she a solicitor,she very scathing about anyone relying on money being fairly allocated without a will for children who are from separate dads/parents.After reading the post I can,t remember who it was,but it bloody upset me about her parents dying and not leaving a proper will even though there was no animosity with new partners,I thought crikey that,s me.I don,t want my dd not studying because of financial issues if something was to happen to me,it,s very important to me she does her degree,we have discussed it a lot,she would never ask her dad for a penny and I respect that.The solicitor was saying provisions must be in place for a young child they will always take precendance over older children,I to a point agree as he only 2 yrs but my fear re house,pension,savings would be contested by ex partner or even my ex husband really got me thinking. I don,t have a new partner,I am just more aware of money problems when someone dies without provisions when they have children.I can understand how much it must hurt the children,if they think the parent has been careless,so it must seem,with money matters.

Retired_I.F.A.

Statistics prove someone perfectly fit and healthy today is around seven times more likely to be off work for 6 months or more due to ill health than they are to reach retirement age and most of us will (cant remember the percentage that will but life expectancy for someone in their 30's now is around 80.) So yes get a will sorted but also look into the far more likely need for insurance that pays an income till retirement age if your off work. Known as Permanent Health Insurance it is the most undersold policy known yet insures your most valuable asset, that being your ability to earn a living.

pandora205

I'm a single parent and been through this recently myself. My children are teenagers so the issues are similar although their father is still closely involved with them.

As mentioned, check the death benefits from NHS pension - it is substantial I am sure. I work in local government and death benefits are three times current salary. This would more than pay off my mortgage (which is now tiny) so I haven't taken out separate life insurance. If the children are under 18 or older (23?) and in full time education, there is also a small pension paid to them. I'm sure the NHS will do something similar. (This is a very good pension deal - one of the perks of working in government employment).

You will need to make a will to ensure the provisions for the children.As you are aware you also need to plan who would look after them and state this in the will. My ex and I both asked close friends rather than family (and the children are in agreement), should both of us die before they reach adulthood, to act as guardians. They are named in the will. Think about who you would like as executor. I've used my ex, who as the children's father, would have their best interests at heart. I've also put a clause in that they cannot inherit the money until the age of 25, as I wouldn't want them blowing the lot at 18!

You have lots of decisions to make once you have the facts. I think you will be reassured by the terms of your NHS pension.

pandora205

Retired_I.F.A. wrote: »

Statistics prove someone perfectly fit and healthy today is around seven times more likely to be off work for 6 months or more due to ill health than they are to reach retirement age and most of us will (cant remember the percentage that will but life expectancy for someone in their 30's now is around 80.) So yes get a will sorted but also look into the far more likely need for insurance that pays an income till retirement age if your off work. Known as Permanent Health Insurance it is the most undersold policy known yet insures your most valuable asset, that being your ability to earn a living.

I haven't done this and probably should have done before now (when my mortgage was bigger) more for myself than the children's need, as they could easily live with their father. As I'm old enough to draw my pension (50s) I think I could manage but this should certainly be a consideration to someone younger.