The birth of a child will prompt many legal considerations for new parents, such as:
Parental Rights and Responsibilities (PRR)
All mothers and fathers have legal rights and responsibilities towards their child. New parents should be aware of their duties: to cooperate with one another to provide the child with care, protection and maintenance.
An unmarried father needs to have his name on the birth certificate to obtain automatic rights, otherwise he may need a court to award them.
Money
All parents want to provide their child with the best opportunities in life as are possible. If possible it is sensible to set up a trust fund or savings account for the child whilst they are very young. Doing so needs good trust advice to maximise trust tax benefits.
Insurance
Good financial advice on your life insurance policy will ensure peace of mind to know for certain that your child will be adequately provided for by the policy you have put in place. We work with several quality IFA providers to ensure clients get the best advice.
Wills
Editing your existing Will to contain provisions for your new child should be carried out soon after their birth. There are several options available, including stating that you wish your child to be a potential beneficiary, to including a trust clause for them. Trust clauses are sensible mechanisms as they will hold the elected property until the child is of a sufficient age to receive it. It is wise to appoint trustees who are professional and impartial, this will ensure that the content of the trust is distributed fairly and appropriately.
Guardianship
It is advisable to consider appointing Guardians for your children so that you know they will always be well cared for. A Guardian may be a member of your family, or a friend. The Guardian essentially becomes the child’s substitute parent in the eyes of the law, as they are awarded parental rights and responsibilities. A Guardianship clause can be inserted into a Will, outlining who the Guardian is and stating that the guardian will be compensated for their services from a trust clause.
To find out more, contact us on 0131 622 9222, or visit: www.edinburghfamilylaw.co.uk.