Protecting inheritance

whitfreak

I'm sorry if I was a little harsh. The how is difficuilt. I mean you could set up something similar to whats in my family where everything is held in trust for the grandchildren, but your daughters get the income. Should a divorce happen then the only claim against the inheritance should be against its income. However, with how the interest in possession rules and tax laws have changed you might find that the inheritance is paying the taxman alot for the privilidge.(lets put this way, we'll have to pay IHT again on our trusts even though my mother has no control over the assets its classed as part of her estate). You'd be able to have clauses which allow the capital spent in certain conditions (if you go the discressionary route). But if these are too broad then the capital might included as one of you daughters assets should there be a divorce. To be honest you need real legal and tax advice.

But other than that route, or variations on that theme I am not sure it is possible. If its not, it is also worth remembering that it even if there is a divorce after your death this money might not be included if the settlement is dealt with between them rather than sorted out in court. I hope you find a definative answer.

margaretclare

Unfortunately this course of action will serve to see them never get their inheritance because it will all be spent on her nursing home fees when she reaches that age.

There is not a specific age at which it is obligatory to go into a nursing home/care home. Only a minority of people do that.

I wish she'd never built it up like she did and she's spent the darn lot of it. Instead she has it sitting in an account where it is benefiting nobody. She won't touch it so the whole lot will be spent on care home fees

Is it absolutely certain that this is going to happen i.e. going into care home?

Threebabes

HI

My dad has a trust fund for my sister and I, he is still married to our mother, even though theyve been split up 20 years and we are also estranged from her.

I think it would be fine to do a trust fund in each of your daughters names. My husbands name isnt on mine and its nothing to do with if our marriage fails.

Running_Horse

Paparika wrote: »

But what if sometime in the future (i hope it doesn't) you marriage falls apart, i thought my marriage was forever, 10 years later it failed ...

and you inherited money and your hubby demanded half...

But the hubby might inherit money, and according to these principle the daughters shouldn't benefit in any way. I hope the OP will include a clause saying they get less if their other halves inherit anything.

Or better still, stop trying to influence people's live once they have gone. What a horrible discussion. Leave it to the grandkids to inherit when they are 18 if you don't trust your own children's judgment.

Pee

I don't know the statistics for how many people require care homes, but I think you will find it is quite a high perentage when they have caused problems for their children or do not have children.

Steel_2

cyclonebri1 wrote: »

No offence taken Steel, but you and several others are failing to understand what I said in the original post.

You are assuming I want to dictate what my daughters do with thier inheritance. I didn't say that. When we are gone they can do with at as they please, blow it in the 1st few weeks, (which I know they wouldn't do), or anything else they like, including sharing it with thier partners.
The afterlife is not one of my investments so no worries there.
But people can change and 20 years on who knows what anyones marital situation will be, therefore I merely wished to make an arrangement that allowed my daughters control of any monies.

I do understand where you are coming from. And you are dictating in a very subtle way but not recognising you're doing it.

By simply leaving money to your daughters in the normal wording of a will, they will have control of it. So allowing them control is not the issue.

The issue is you want them to have sole control by law so their husband cannot legally make them give them a share in the event of a divorce. By having some kind of clause in your will, you are controlling that money and subtly influencing their future arrangements of their finances should their marriages break up. It's not your place to influence that or have a controlling hand in it. The arrangements a couple decide should the marriage dissolve is their business and not have a parent's hand in it from beyond the grave.

I can see you want your daughters and grandchildren to be provided for should anything happen. But you could also find you arouse feelings of resentment in your future sons-in-law for making them feel outsiders and be appearing to hoard family money away from them in the future, when they will no doubt be working very hard providing for their families in the coming years.

In reality, yes we all know they will have access to the money through your daughters. But it's the principle of being excluded and all the negative unworthy feelings that arouses in them (ie "they never thought I was good enough for their daughter and now they've proved it") that you need to be careful of. It may seem ridiculous, but emotions are not logical and these little things snowball after a few years and fester in people.

Marital money - all of it - is shared money and should all be split on divorce unless the couple decides otherwise.

margaretclare

Pee wrote: »

I don't know the statistics for how many people require care homes, but I think you will find it is quite a high percentage when they have caused problems for their children or do not have children.

According to this http://www.lancs.ac.uk/fass/faculty/activities/354/

it is 21% of people aged 65 and over who end their lives in a care home.

If you take that figure as accurate, 79% of people do not end their lives in a care home.

Therefore it's the minority who do, and the majority who do not.

floss2

margaretclare wrote: »

According to this http://www.lancs.ac.uk/fass/faculty/activities/354/

it is 21% of people aged 65 and over who end their lives in a care home.

If you take that figure as accurate, 79% of people do not end their lives in a care home.

Therefore it's the minority who do, and the majority who do not.

However, as the percentage of our population who are over 65 is growing steadily, and people are living longer, I think these figures may very well change over the course of the OP's lifetime.....certainly life expectancy has increased in my lifetime.

And I think what Pee was trying to say is that if a parent has to be "put into a home" by their children, if that parent has been less than fair it is probably more likely that they will end up in a care home rather than being cared for by their family in a family environment!

Kaz2904

margaretclare wrote: »

There is not a specific age at which it is obligatory to go into a nursing home/care home. Only a minority of people do that.

Is it absolutely certain that this is going to happen i.e. going into care home?

Nothing in life is certain. She could have a stroke / heart attack / become severly diabetic any day. She could drop dead tomorrow. She could outlive us all. She could refuse to go into a nursing home and have home care.
All I'm saying is that it is a high possibility that she will go into a nursing home. I don't have space for her to live with me and nor would I want her to. I don't think that I would be able to give her the same standard of nursing care that I am able to give my own patients when I've been at work all day and have to come home to her.
Anyway, again completely off topic, sorry to OP.

squirrelchops

A touch flippant but ......200k left to each daughter ...blimey! I am presuming this will be out of asset worth of your house when it eventually has to be sold when you pass away.

The only reason i ask is that if my brothers and i thought my Mum was sat on a load of cash we would be most upset she hadn't spent it on herself in her old age and instead worreid about us as some parents do.

I knwo how complicated wills/estate can be as I am presently coming to hte end of on going issues caused by my Father not leaving a will. this issue has gone on for 31 years!! that is not a typo 31 honestly!!