How can we Protect my Sister's Inheritance

itsanne

The situation re inheritance when finances are split in divorce/separation is different in Scotland. This link provides some guidance.

ETA added as may have been ambiguous before.

TBagpuss

As, missed this. Does your sister live in Scotland, or just your mum?

whitewing

Will the estate need to pay care home fees for your mum?

willieormandsheroes

Just revisiting as stuff has been going on - firstly many thanks to all for feedback, thoughts and advice provided.

Sister lives in Scotland; matrimonial home is a housing association house that her husband had before they met; as far as I am aware - and can imagine; they have no savings, assets, life policies etc whatsoever, My sisters husband may of course have assets or savings that he has hidden from my sister. The are totally dependant upon the state.

My mother is in an NHS Scotland hospice and so she has no costs to pay towards her keep.

Lets_say

A few more things for you to consider OP, and no reply required.

You say they are reliant on the state. If your sister leaves, what are her employment prospects? Has she ever had to manage the finances of her own home?

Have you looked into how an inheritance can affect someone on benefits?

I'm assuming she will be 66 before she is able to get her state pension.

Wishing you all well.

willieormandsheroes

Thankyou - all very important things for us to consider - most of which we have already - but good to get reminded.

willieormandsheroes

My brother now has Power of Attorney for my mother - all signed, sealed and delivered, This PoA seems to include power to 'vary Testimonies' - is a Will a 'Testimony'

relaxtwotribes

It should be possible for your sister to execute a PoA in favour of you and your brother, jointly and severally, giving you power specifically to execute a Deed of Variation of your mother's will (but nothing else). This will allow you to take an agreed course of action with the legacy for the benefit of your sister and take the pressure off your sister. Legal advice needed, of course.

getmore4less

DOV are a tax tool to mitigate IHT and CGT when assets are redistributed they do not change the will.

The means that for other issues the redistribution is just like a gift/deprivation of assets by the original beneficiary.

rpc

My original suggestion was going to be to try and get her out of the relationship and leave the money as a side issue. The inheritance is less important that your sister's wellbeing, even though it may grate for him to get some of it.

But as you are in Scotland, the assets will be divided as they were at the agreed date of separation. If she leaves (and documents that to make the date beyond argument) then any money after that is hers alone.

Inheritance is usually excluded from divorce settlements under Scots Law anyway provided that they are left "untouched" by the marriage. If he gets access to it prior to separation or it goes into a joint account then he may have a claim. If it is always under her control he can't lay claim to it (he will probably try, but he won't be able to).

I would try to talk with Women's Aid, then get her to talk with them. Then get a solicitor.