The nation is rejoicing following the birth of the latest member of the Royal Family, as HRH The Duke and Duchess of Cambridge celebrate the birth of their son. While the world may have been watching, the event is one that will change the private and public lives of the young Royals, like any young couple setting out on the road as parents. Here, Alison Atack gives some (tongue in cheek) top tips on things that William and Kate may wish to consider:
1. Bringing up baby costs a lot of money – research conducted for a major insurance company showed the cost of raising a child is up by a whopping 58% on 2003, at a UK average of £222,458 from birth to 21 years old. Add in the additional costs associated with a Royal baby and the figures start to look pretty scary. Financial planning is a must!
2. Taking time off for mum and dad – any working Mum is entitled to 52 weeks of maternity leave, and most will also qualify for 39 weeks Statutory Maternity Pay or, failing which, Maternity Allowance. For Dad, the allowance is less princely, with only two weeks paid paternity leave if mum uses her whole Statutory Maternity Pay allowance! Either way, ensure you investigate what you may be entitled to and inform your employers – easily done in this case.
3. Home Sweet Home – many couples find the bijou flat they have enjoyed as a duo will not meet their needs as a trio. Wills and Kate may be a little better prepared in regards to space, but nonetheless it is worth considering whether trading up the property ladder is necessary to ensure Rex junior has all he needs to grow and prosper. If a move is necessary, the couple needs to decide on ownership – for most joint ownership will be the way, but couples can take a different view. For example, what is the value of separate properties being sold to finance the new pad? Has the property been in the family for some time? Is one partner providing all of the deposit finance? Then there’s the question of a mortgage, and who is paying what.
4. A Little Insurance: The only certainties in life are death and taxes, so while it may seem a morbid subject it makes good sense to plan. Certainly, couples raising a family and buying a home together would be very wise to take out life insurance – particularly when one or both participate in dangerous sports like polo. The amount to be insured is entirely up to the couple concerned, but certainly should cover the mortgage in full and ideally should provide income cover as well.
5. Don’t forget the Will, Wills! Young couples taking the wise decision to draw up a Will are generally motivated by a desire to ensure their children are looked after in the unfortunate event of their deaths. Who is to have guardianship of the newest Royal in that tragic circumstance? Grandfather and his Duchess may be getting a little old for the demands of child-rearing; Great Uncle Andy has lots on his plate and Uncle Harry is too busy pursuing his military career.
6. Patter of Tiny Feet: At some stage most married couples will inevitably be considering the future of their children. Childcare and school fees may be required. Neither Eton nor Gordonstoun comes cheap. University fees may need to be paid, particularly south of the Border. Depending on your circumstances, you may be in a position to make financial gifts to help children out during their time at university, with buying their first home, or with a wedding. Alternatively, it might be appropriate to look at setting up trusts to protect assets for their future. In any case, married couples should seek advice on the different ways in which they can assist their children financially and how best to do this with a view to saving inheritance tax and capital gains tax in the future.
