Parents Should Always Consider a Will - for the Children's Sake

Parents should always consider a will – for the sake of their children

Many associate a will with old age, large fortunes, or complicated family relationships. For young adults, particularly parents of young children, a will can seem both distant and unnecessary. Yet, it is precisely in this phase of life that a will can be particularly important – not primarily for the distribution of assets, but to secure the children's interests should the unthinkable happen.

Who controls the children's money if you die?

When a married person dies, the surviving spouse must decide whether to proceed with a division of the estate or to establish a joint ownership. A division of the estate is when the inheritance of the deceased person is distributed among the heirs, either privately or through the district court. Joint ownership is when a surviving spouse (or in some cases, a cohabiting partner) takes over the entire estate without any immediate distribution of inheritance.

If a parent dies and the estate is settled, the children will receive their inheritance. If the children are under 18 years old, they cannot make decisions about the inheritance themselves until they reach the age of majority. In the absence of a will, the County Governor (Statsforvalteren) will manage the children's inheritance.

We meet many who are surprised that this is the solution in the law. Most people do not want this solution and therefore need a will to be able to influence who will manage their children's inheritance themselves. The County Governor does an important job, but their system leaves little room for individual adjustments, and in the worst-case scenario, there is a risk that the funds will lose their value over time.

In many cases, a prenuptial agreement can be necessary and practical. However, several factors must be specifically considered if you are considering establishing one. If you are considering establishing a prenuptial agreement, you can read more about it here.

With a will, you decide

By creating a will, you can decide yourself who will manage your children's inheritance if you die prematurely. You can, for example:

Appoint a specific person (or persons) you trust to manage the funds

Determining that money should be used for specific purposes, such as housing, education, a driving licence, or health

Postpone the time when the child has full control over the inheritance

Gifts like this provide greater flexibility, and can ensure that an inheritance benefits your child in the way you believe is best for them.

This also makes it possible to facilitate the growth in value of funds, so they don't lose value as a result of inflation. We often see a need and a desire for an alternative to the traditional savings account for placing funds. This can be facilitated with a will. When the time comes, the person you have appointed to manage the funds can, for example, seek advice from a financial advisor, who can provide advice on sensible placement of the funds.

Testament is about care – not pessimism

Writing a will at a young age isn't about being pessimistic or expecting the worst. It's about responsibility and care. Just like insurance and power of attorney, a will is a tool for creating security for those closest to you, and for those left behind.

Nobody likes to think about death, and very few people know when it will happen. But for parents, it can bring great peace of mind to know that important questions have been addressed in advance – especially when it comes to their children's financial security.

A simple process of great significance

Many people postpone creating a will because they believe it is complicated or expensive. In reality, a simple will can cover essential needs. The will can be changed later if life circumstances change.

For young people with children, the question therefore isn't whether they are «old enough» to write a will. The question is whether they wish to take extra care of someone if life doesn't go as planned.

Considering setting up a will, get in touch to hear how we can help.