The Rewards of Parenthood Are Priceless (But Also Expensive)

A financial planner can help you build a bright future for your child—while keeping your other goals in sight.


How Can I Protect My Children Financially?

Give your family financial security by asking your financial planner to help you set up an estate plan.

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5 Ways to Protect Your Children Financially

1.Have Life Insurance

If you don’t yet have a policy, consider that life insurance pays an immediate tax-free benefit to your beneficiaries upon your death—there’s no waiting period or fees involved.

2.Name Your Beneficiaries

Registered investments — RRSP, TFSA, RRIF — allow you to name a beneficiary, which can reduce any probate fees. But special rules apply if you are naming a minor or disabled child; so be sure to talk to your legal advisor about the pros and cons of this choice.

3.Name a Guardian

This is the person who will take care of your children should you and your spouse both pass away. He or she would be responsible for your children’s care, education and general well-being until they reach 18 years of age (19 in some provinces).

4.Update (or Create) Your Will

A Will outlines how you want your assets to be distributed when you pass away, along with other key instructions about your estate and your family. It’s critical that your Will outlines how your children should be cared for if you were to pass away.

See Dying Without a Will
5.Consider Setting Up a Trust

Keep in mind that if you leave assets to a minor child in your Will, they don’t have the legal capacity to receive them. By setting up a trust, you can leave funds specifically for the benefit of your child and appoint a trustee to manage the funds on your child’s behalf.

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Estate Planning is More Than A Will

RBC Financial Planning is a business name used by Royal Mutual Funds Inc. (RMFI). Financial planning services and investment advice are provided by RMFI. RMFI, RBC Global Asset Management Inc., Royal Bank of Canada, Royal Trust Corporation of Canada and The Royal Trust Company are separate corporate entities which are affiliated. RMFI is licensed as a financial services firm in the province of Quebec.

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