An inheritance issue.

*Robin*

Hope this is the right place for this question; if not, mods please move it - thanks!

Recently my FIL passed on; DH is one of his beneficiaries (FIL's affairs are still being sorted out).
However, DH is terminally ill and may die before his Dad's estate is settled. DH has a Will, but it doesn't include disposal of this inheritance he is due to receive.
DH would like his sisters' children to benefit from his Dad's money, which I fully support (DH's Will names me as beneficiary for his entire estate).

Is there any way we can write a simple statement to be added to DH's Will when the time comes - to reassure his relatives that this family money will stay in their family rather than be passed to me?
DH is too ill to see our solicitor and change his Will.

I would like to avoid any conflict or bad feeling - due to living far apart, none of DH's family have met me and I've got the impression they don't trust me to do the right thing, which is entirely understandable.
The truth is that I neither want nor need FIL's money, and if it does end up in my hands the first thing I'll do is find out how to carry out DH's wish, which is to put the money in trust to help fund the children's university education, or go towards the deposit on a house (all the kids are under 10 years old at the moment).

BitterAndTwisted

If your DH dies before the estate is settled his share won't come to him or his estate, so none of the funds will pass to you for dispersal

System

BitterAndTwisted wrote: »

If your DH dies before the estate is settled his share won't come to him or his estate, so none of the funds will pass to you for dispersal

That is all dependant on the wording in the will and not a foregone conclusion.

Crabapple

Sorry to hear you have this situation, it must be very hard on you and your family.

On a practical note:-

It may be that there is a survivorship period in your FIL's Will to say that people should survive him for more than 28 days for example. That type of clause is common (although mostly for spouses not children) so you should perhaps check the wording but by the sounds of things your husband will inherit.

The key date is date of death, not the date that the administration of the estate is complete.

Your husband could do a home-made codicil to his Will which would work so long as it is all done correctly (the key points being it should mention it is a codicil to his Will and it be signed by him and witnessed by two independent people). If you want to be absolutely sure then you could enquire whether a solicitor would do a home/hospital visit, but this might cost more. Alternatively he could sign a Deed of Variation to pass his share of that Estate on, but this would need a lawyer to prepare it. If there are solicitors dealing with FIL's estate then perhaps ask if they could do this for him?

If he is unable to make a document or makes an invalid one and you ended up inheriting you could sign a Deed of Variation and divert that part of your husband's estate to his nephews and nieces.

The one thing you must do in either event is to make sure that the money concerned can be easily identified. If the estate gets wound up and monies paid to your husband then it would be best to put them in a separate account so there is no confusion over which money is to be paid across rather than to you. You should bear in mind that if there are debts to be repaid they have to come out of the estate and you wouldn't be able to 'ringfence' the money from FIL against that if there were a lot of debts and few assets.

HTH

Nicki

Crabapple is right, and BitterandTwisted is incorrect on whether your OH will inherit from FIL.

It sounds like your OH is very poorly and not up to much paperwork at the moment. I would suggest that it is probably easiest to let him or his estate inherit the money, and for you to then make sure that you deal with it as he wishes when the time comes by way of a deed of variation on his estate. There shouldnt be any tax consequences of dealing with it that way assuming you and your OH are married. You could always write to the family to explain how ill he is and to tell them now that this is your intention if you are worried about bad feeling, but really there isn't any need to, and I imagine you too have other things you need to be thinking about at this time.

NAR

Nicki wrote: »

I would suggest that it is probably easiest to let him or his estate inherit the money, and for you to then make sure that you deal with it as he wishes when the time comes by way of a deed of variation on his estate.

This is the easiest solution.

Mojisola

I'm sorry to hear of your DH's illness.

I would also go with a DOV of his will. As they are minors, the money should go into trusts for them. Would he want their parents to be the trustees?

As he's too poorly to see a solicitor, you could write a letter for him to sign, expressing his wish that you do the DOV. It wouldn't be legally binding on you but perhaps it will show his family that you both have the children's interests at heart.

One thing that might be worth considering - does he have any other siblings who are likely to have children? If so, he might prefer to set up a trust that will take account of any future nephews and nieces.

sleepless_saver

Mojisola wrote: »

I would also go with a DOV of his will.

Deed of variation will be fine as long as you are not expecting to have to claim any income related benefits at any point. If you are, then it would be better to change the will - have the solicitor come to the house.

Mojisola

sleepless_saver wrote: »

Deed of variation will be fine as long as you are not expecting to have to claim any income related benefits at any point. If you are, then it would be better to change the will - have the solicitor come to the house.

That's an important point. As the first post says that the money isn't needed, it might not apply in this case but it's worth noting if anyone else is in a similar position.

*Robin*

Thank you to everyone for your comments. We have spoken to family and made DH's wishes clear. His siblings have already received their shares so the Executor is going to try and push their family solicitor to transfer DH's inheritance as soon as possible. He has already written out cheques for the children in the hope that the funds clear while he is still here (the parents will be trustees for their offspring).

If events overtake us, I will put this money into a new account as Crabapple suggests, and my solicitor will prepare a Deed of Variation so that I can carry out DH's wishes.