Is a pension part of an estate?

Mojisola

Depending on the amount of cash available and the value of the house, you could buy out the children and have complete ownership of the house if that suited you.

Unless you're willing to sell the house when the children want their money, it's worth looking at alternatives to being 'tenants in common'.

How old are the children - adults or minors?

Mandy55

The children are minors. I believe i own the majority of the house but in a trust, so i couldn't sell and capitalise. the remaining percentage (about 10%) is owned by the children (in another trust)

Does that make any sense at all?

Thank you

Mojisola

Mandy55 wrote: »

The children are minors. I believe i own the majority of the house but in a trust, so i couldn't sell and capitalise. the remaining percentage (about 10%) is owned by the children (in another trust)

Does that make any sense at all?

If there wasn't a will, how did the trust come about?

Mandy55

The trust came about because the children are too young to have the money from the estate. So a trust has (or is in the process of) being set up. The children have a small proportion in the house and a large lump sum which will be divided between them when they're older.
I believe that if we had a will, all monies would have come to me. Because there wasn't a will then the first £250,000 comes to me (but i'm not sure of that either) and the remaining amount is divided to the boys in a trust. I think i can access it from time to time for 'educational purposes'??

What do you think?

Thank you

Mojisola

Mojisola wrote: »

This first £250,000 comes to you plus half of the rest of his estate. His blood-related or adopted children get the other half of the 'rest'.

Mandy55 wrote: »

The trust came about because the children are too young to have the money from the estate. So a trust has (or is in the process of) being set up. The children have a small proportion in the house and a large lump sum which will be divided between them when they're older.

I believe that if we had a will, all monies would have come to me. Because there wasn't a will then the first £250,000 comes to me (but i'm not sure of that either) and the remaining amount is divided to the boys in a trust. I think i can access it from time to time for 'educational purposes'??

If there was a will, the estate would be divided according to the will. As there wasn't a will, you have to follow the intestacy rules - as mentioned above.

Each child should have their share of the money set aside for them now - it shouldn't go into one big pot. As administrators, you will both be legally responsible for their money until they reach 18 and have a legal duty to look after it well.

It would be worth getting advice about what you're doing as you don't seem to be sure of the legal responsibilities.

(As always with wills, I should have checked that you are in England or Wales)

Mandy55

Thanks. Yes, in England

getmore4less

How much of the liquid assets have you got?

It looks like the divide has been you get your share as the house and the kids get the cash?

Is that the way you wanted it?

You need to make sure you are have control of the trust that hold the house so you can sell and move on if you want.

getmore4less

Just occurred to me you did not say when he died.

The rules changed recently Oct 1st, the distributions are different.

Mandy55

He died a year ago

getmore4less

That changes things.

http://www.hmrc.gov.uk/manuals/ihtmanual/IHTM12121.htm

you may want to look at this as well
http://www.hmrc.gov.uk/manuals/ihtmanual/IHTM35190.htm