Will making questions?

Brighty

Hi all

Need some advice regarding wills.

Background. After the recent passing of both my parents, I’ve contacted the solicitor I used for buying our house as I need go to a solicitor soon to swear the oath for both probates (once I get the paperwork) and talk to him about getting my parents 2 houses, we intend to rent out, put in our names, 50% in my brothers and 25% each mine and my wifes (for income tax purposes). Also to get another rental property I currently own as joint tenants with my brother changed to the above split as well.

As neither my wife or I have wills, I intended to take the opportunity to get that sorted at the same time. Just found out about will-aid month, but unfortunately my solicitor isn’t involved, but another in Darlington is, so may book a separate appointment to see them instead. Either way I’m looking at getting wills for my wife and I sorted in the next week or so.

Have some questions about wills. Obviously I can ask questions of the solicitor when I’m there, but think it makes sense to know roughly what we want before we go.

Fairly basic to start with I think, everything goes to surviving partner, surviving partner leaves everything to the 2 kids. I assume it’s normal to then have a contingency for if one of us outlives the other and the children? If so this is where it’s a bit tricky. My first thought was I’d want to leave everything to my brother and my wife would leave everything to her brother, but that doesn’t sit quite right with me, doesn’t seem right that if I go first then her brother gets half of the 3 ‘Brighty’ old family homes and my brother gets nothing, whereas if she was to go first my brother would get the lot? So this is where I’m stuck. Maybe put something in both wills stating the 3 old family homes go to my brother and then our home goes to the brother of whoevers left? This of course assumes my brother survives me/us, but to be honest if I was to survive my wife, kids and brother, I’d sell the lot and blow it on fast cars and faster women anyway.

Next question is about leaving everything to the kids, both of which are toddlers at the mo. What is the usual age people set for the kids to have the cash/property? Obviously wouldn’t want them to have the lot at 18 and blow it all, so maybe 21 or 25 even? But then again I wouldn’t want them to potentially not afford to go to uni at 18 because of lack of funds when they could? Obviously also need to think about guardianship of the 2 kids, but that’s a done deal I think, wifes brother is married with a baby so they would be best.

Apologies for the length of post, but wanted to get it all down.

Cheers

Brighty

daska

If you have a sizeable estate and young children then it might be worth considering a Trust for the benefit of spouse, children and grandchildren. The surviving spouse can be given 'use' of the estate on condition that it's repayed - this can be a formal loan registered against property. You need to own your properties as tenants in common for this to work which is what it sounds as if you're doing anyway? The joy of a Trust is that the money is available to be given to or spent on the children but they don't automatically get control of it all. The use of the funds in the Trust is controlled by the Trustees. So, for example, the property dad lives in is owned 50:50 by Mum's Trust and dad. Then my dad, sister and I have lent dad the value of the remainder of mum's estate and secured that loan against his half of the property. If he sells or dies the Trust recoups the money and it is then available for my sister and I (and dad if he's still alive) to lend to each other, buy things for ourselves and our children.

What might cause problems is if you leave specific properties to people and encounter events later in life that mean you dispose of those properties, you'd have to amend your Will to cope with each sale. Whereas if you leave a percentage of your estate that encompasses everything you leave but allows for more flexibility. (Obviously if your house has been in the family for centuries you might want to take different steps to protect that history.)

Brighty

Cheers, will have to read up on trusts then.
Not sure what defines a 'sizeable estate', didn't mean to suggest century old stately homes, lol. Properties owned jointly with my brother are the house we grew up in down south, which we bought from our parents when they relocated to Licolnshire 10 years ago and we then rented out a couple of years ago when we both relocated, worth approx 240k with 70k mortgage, then my parents rental property which was my grandads house, worth approx 200k and my parents Lincolnshire home we intend to rent out, worth 120k, so 560k worth of houses which i own half of, but will soon be splitting with my wife. Then there's the house my wife and i are in now up north, worth approx 135k with 100k mortgage.

Regards

Brighty

Fire_Fox

You need to consider what happens to the children if you and your wife both die, as in who is to take care of them. Have you agreed this with godparents or relatives or are you just assuming? Depending on their personal circumstances (size of home, income) and the effect of taking on two dependants, you may wish to leave the proposed guardians the money OR leave the money in trust for your children until they are 21 OR a combination. Remember the guardians may not only need a larger home but also for one to quit work or additional childcare costs.

You also need to consider whether the properties you own with your wife and brother are owned as joint tenants or tenants in common, very different for inheritance and inheritance tax. Also consider if you are leaving the properties as they are, or wish them to be sold and the proceeds divided - this can avoid family disputes. Don't forget wills can and should be amended every time there is a significant change in circumstances, so if a couple splits up or a younger relative predeceases an older relative. You don't have to consider every possible permutation.

Anything with a mortgage is likely protected by life insurance, plus you may have death in service benefits which will increase the size of your estate.

daska

As mum's estate came in at far less I would assume that £500K is large enough to consider asking about a Trust. The rules keep changing though, so what was valid when they made their Wills might no longer be valid for you. E.G. you can now 'inherit' the unused % of your spouse's tax allowance whereas when they wrote their Wills this wasn't possible.

Goldenyears

Your plans seem to prevent direct inheritance by your grandchildren (yet to be born?) if their parent dies before them. Is that your intention?

Ironic me replying to this since I have blocked direct inheritance by the grandchildren of my siblings, but they are more remote than grandchildren.

Anyway your solicitor will advise. After a clause leaving everything to the spouse (an assumption) I would expect them to include the situation of both spouses dying within 28 days or thereabouts, and following that unusual but possible circumstance the details of how the estate is to be split.

trulys

Not sure if anyone else has said this, but do be aware that if the solicitor adds themselves to your Will as an executor, they'll certainly end up making a nice little fee out of your estate when you sadly pass on! At least if you name a relative, or friends, if they need the help of a solicitor, they can choose to employ someone if they need to!