Intestacy rules would achieve what I want - any point in making a will?

snowleopard61

I suppose I was wondering whether there was any other way of protecting daughter A's position than through inheritance - could I, for example, insure my life in her favour so that she could afford somewhere on her own?  (I realise this would be to treat them unequally but it would be for a specific purpose and I don't think it would be unfair in the same way as unequal shares of the estate as a whole.) My ex-husband and I had life policies in each other's favour when the children were younger so that in the event of his death I would receive an equivalent to maintenance for the children and in the event of mine he would receive the means to pay for childcare to enable him to continue working.

Martin_the_Unjust

The obvious thing is to have a conversation about it with daughter B

pphillips

snowleopard61 said:

I suppose I was wondering whether there was any other way of protecting daughter A's position than through inheritance - could I, for example, insure my life in her favour so that she could afford somewhere on her own?  (I realise this would be to treat them unequally but it would be for a specific purpose and I don't think it would be unfair in the same way as unequal shares of the estate as a whole.) My ex-husband and I had life policies in each other's favour when the children were younger so that in the event of his death I would receive an equivalent to maintenance for the children and in the event of mine he would receive the means to pay for childcare to enable him to continue working.

Yes, whole life policies can be written on single lives, as well as joint lives, and are paid out on the death of the life assured during the assured term but nothing is paid out if the assured life survives the assured term.
There will be an age cap for taking out the policy, usually 80 years old, and the older the person the higher the premiums.
Life policies, as well as a lump sum death in service payment under an occupational pension scheme, can be written in trust as a useful way for wealthier individuals to avoid inheritance tax.

Savvy_Sue

pphillips said:

snowleopard61 said:

I suppose I was wondering whether there was any other way of protecting daughter A's position than through inheritance - could I, for example, insure my life in her favour so that she could afford somewhere on her own?  (I realise this would be to treat them unequally but it would be for a specific purpose and I don't think it would be unfair in the same way as unequal shares of the estate as a whole.) My ex-husband and I had life policies in each other's favour when the children were younger so that in the event of his death I would receive an equivalent to maintenance for the children and in the event of mine he would receive the means to pay for childcare to enable him to continue working.

Yes, whole life policies can be written on single lives, as well as joint lives, and are paid out on the death of the life assured during the assured term but nothing is paid out if the assured life survives the assured term.
There will be an age cap for taking out the policy, usually 80 years old, and the older the person the higher the premiums.
Life policies, as well as a lump sum death in service payment under an occupational pension scheme, can be written in trust as a useful way for wealthier individuals to avoid inheritance tax.

And to stress this, assuming you have an occupational pension, you will have had the chance to nominate someone to benefit from any Death in Service benefit. Nominating daughter A - as long as they both know what's happening and why - should help. 

snowleopard61

Thank you all once again.

 

I would – will – have to have a conversation with both of them about whatever I decide to do.  But it can’t be assumed that daughter B will just understand and accept anything she might perceive as preferential treatment for her sister.  Of course she would never see her sister homeless, so she would completely accept that she would have to wait for a reasonable period for a sale and purchase to go through – and I’d like to emphasise that neither of them is wishing me gone so they can inherit!  Furthermore, I need to say to them both how important it is, to me, for them to be “there” for each other after I’m gone, and from one point of view daughter A is obviously more vulnerable in that respect.

 

However, daughter B hasn’t led a charmed life; everything hasn’t just fallen into her lap – she has worked hard at school, university and in the workplace for the financial independence and security she has.  I know that if you scratch the surface you’ll still find the teenager who felt her sister was indulged and protected because too much pressure might “push her over the edge”, and knows that the said sister has lived rent-free at home for many years for the same reason while she herself has had to pay her way (while living away from home). So this is more sensitive than it may sound.

 

None of that negates anything PPs have said – it’s just by way of background.

 

I’ve had a lot of good advice here and been left with a lot to think about.  I’ll leave it there, and am grateful for all your comments.

hb2

OP, you are right to tread carefully. My own mother was the child who had to go straight home from school to do the chores, the one chosen to be sent to state school because my grandparents (working class people) couldn't afford to send both girls to private school etc - all because her sister was 'in delicate health'. She carried that resentment right up to the day she died at the age of 91