Safeguarding the grandchildrens' inheritance

renard_2

My wife and I are both 70. Only one child, our daughter (38), with children aged 9 and 7.

We want to make wills, leaving much of our 'estate' to our daughter but also leaving a tidy sum for our two grandchildren when they reach 18 or 21 (not decided yet).

We are reluctant to simply leave their cash for our daughter to look after for many years. She might remarry, or take up with some bloke, and there may be temptation for her / them to "dip in" to the childrens' funds.

Before we consult a solicitor to draw up our wills, we would welcome any advice on the best way to safeguard the grandchildrens' inheritance. Being cynics, we are reluctant to absolutely trust any solicitor to give us advice which does not benefit their firm unduly to our detriment.

Also, please does anyone know an online forum dedicated to wills / inheritance?

Savvy_Sue

I think you will need some professional advice, because what you need is to set up a trust within your will. You can appoint trustees along with your executors, and there must be more than one. While I understand that you don't entirely trust solicitors there is some value in using professionals, because there are legal requirements to produce 'trust accounts'.

You also need to safeguard income and possibly the right to stay in the house for the survivor following the first death. That depends on how you currently own the house - in shares which automatically pass to the survivor or in shares which don't automatically pass.

I'm just starting to work through my father's will, which is a mirror will of my mother's. Dad's half of the house is held in trust for the remainder of my mother's lifetime, but on her death (assuming she doesn't change her will and leave her half to the cat's home) it comes to us children. But Mum can't sell the house, run off with a toyboy and completely disinherit us. Forgive me if I'm making light of these things, I'm making a point rather than suggesting that either of you would do this, any more than that's a likely scenario for my mother.

We've taken some advice from an accountant who deals with Trusts and Estates, and that's been very worthwhile: if we use them, we won't have the aggro of setting up new bank accounts for the execution of the will and the trusts, and they will produce the Trust accounts we need. Yes, it will cost, but it will save us a lot of worry and difficulty.

You could do worse than get a book from the library before visiting a solicitor, and getting clear in your own minds roughly what you want to do. Then it's up to the solicitor to advise on the best way of doing it, and also to get you to consider the 'what if' questions - what if your daughter and her children all pre-decease you? (unlikely I know, but still a possibility); what if your daughter has more children?

But when you do consult one, can I suggest that it's a STEP member, because this is their speciality, and you should get excellent advice.

moonrakerz

renard wrote: »

Before we consult a solicitor to draw up our wills, we would welcome any advice on the best way to safeguard the grandchildrens' inheritance. Being cynics, we are reluctant to absolutely trust any solicitor to give us advice which does not benefit their firm unduly to our detriment.

I think you are being very short-sighted here !

You are basically saying that you don't trust a Solicitor (or Legal Exceutive) from a legal firm who should be fully insured and regulated and that instead you would rather take advice from someone on a web forum who you have absolutely no idea who or what they are !!

Solicitors make far more money from sorting out badly drafted DIY Wills than they do from writing "proper" wills !

Please - get decent advice !

sloughflint

moonrakerz wrote: »

I think you are being very short-sighted here !

You are basically saying that you don't trust a Solicitor (or Legal Exceutive) from a legal firm who should be fully insured and regulated and that instead you would rather take advice from someone on a web forum who you have absolutely no idea who or what they are !!

Solicitors make far more money from sorting out badly drafted DIY Wills than they do from writing "proper" wills !

Please - get decent advice !

Oh Moonrakerz.Have you not read the horror stories littered on ths forum involving solicitors?

I think the OP is being rather wise. They haven't said they're not going to employ a professional-they're researching beforehand.

SavvySue is quite right to recommend STEP.

SavvySue, are you sure your mother can't sell the house? What if she wanted to downsize? I suppose it depends on how the Will was worded but some life interest wills allow for this scenario.

Savvy_Sue

sloughflint wrote: »

SavvySue, are you sure your mother can't sell the house? What if she wanted to downsize? I suppose it depends on how the Will was worded but some life interest wills allow for this scenario.

I'm sure she can downsize, because we'd all be shouting 'hurrah!' if she decided to do so (why did two elderly people think that a house with 5 'bedrooms', a study, a dining room, a lounge, and a kitchen diner but no sane way of getting in and out with mobility problems was a good idea?), and as one of the trustees of Dad's will I have a letter of wishes which says I'm to put her needs first.

Which reminds me, letters of wishes are a good thing (if you sign them! - Dad hasn't but we're still acting on it!) because you can outline the kind of things for which you'd be happy to have money paid out early, eg if one of the children became ill or disabled then having cash for adaptations might be good.

And that reminds me of another thing, which is that isn't there some relatively recent (in legal terms) legislation which means that whereas you USED to be able to set up a trust for the children to avoid inheritance tax, you can't do so any more unless you let the kids have it at the age of 18?

Professional advice, definitely. The chap we saw explained that even though Dad's will would be drawn up differently if he was writing it today, it had been sufficiently 'future-proofed' so that when Gordon allowed married partners to inherit without IHT and doubled the survivor's limit, it didn't need to be re-written. That's one of the things you're paying for ... when you use a professional!

sloughflint

Savvy_Sue wrote: »

I'm sure she can downsize, because we'd all be shouting 'hurrah!' if she decided to do so (why did two elderly people think that a house with 5 'bedrooms', a study, a dining room, a lounge, and a kitchen diner but no sane way of getting in and out with mobility problems was a good idea?), and as one of the trustees of Dad's will I have a letter of wishes which says I'm to put her needs first.

Oh good.

Savvy_Sue wrote: »

. But Mum can't sell the house, run off with a toyboy and completely disinherit us.

....had me worried and nothing surprises me anymore I'm afraid.

moonrakerz

sloughflint wrote: »

Oh Moonrakerz.Have you not read the horror stories littered on ths forum involving solicitors?

I've not read many from people who have DIY'd it and who admit to making almighty c***-ups - presume they all did it correctly ? :D:D

sloughflint

My point clearly went right over your head.

simpywimpy

is there any time limit on applying for probate after a death? My mum died 2yrs ago now but we haven't bothered acting on her will as my dad is still with us. Anyone know if this is in fact ok?

renard_2

moonrakerz wrote: »

I think you are being very short-sighted here !

You are basically saying that you don't trust a Solicitor (or Legal Exceutive) from a legal firm who should be fully insured and regulated and that instead you would rather take advice from someone on a web forum who you have absolutely no idea who or what they are !!

Solicitors make far more money from sorting out badly drafted DIY Wills than they do from writing "proper" wills !

Please - get decent advice !

Many thanks for this, and to all who have posted - particularly Savvy Sue for such generous use of her time and advice. Many thanks again.

I stress that we certainly DO intend using a solicitor, as no doubt a Trust will have to be set up. But sloughflint is correct in surmising that, from experience, we do not wholly trust them to give advice which is best for us, rather than makes an extortionate profit for them now and in the future. Sad but true, I'm afraid.

I've read a couple of books on wills, Savvy Sue, but finished up more confused than ever!

What we are hoping to obtain here is guidance from someone truly independent - perhaps a retired professional - on the best course in relation to the grandchildren. We could then at least face a solicitor armed with some independent advice, rather than as lambs to the slaughter - if that's not too melodramatic!

EdInvestor

simpywimpy wrote: »

is there any time limit on applying for probate after a death? My mum died 2yrs ago now but we haven't bothered acting on her will as my dad is still with us. Anyone know if this is in fact ok?

It should be done within a year.

http://www.hmrc.gov.uk/CTO/customerguide/page4.htm