Disclaiming an Inheritance

paitman

My mother has recently died and the executors are sorting out her estate.

In her will she left a very small inheritance to her grandchildren.

One of which is going through a divorce. 

The petition has been applied for they are due to exchange financial details for the consent order 

Is it possible to refuse the inheritance, 

Give it to someone else

or put it into trust for their child

The estate has not gone to probate yet and due to the current situation we do not know what it will be or when it will be sorted.  We are led to believe it could take up to 12 months or longer.

many thanks

AnotherJoe

A deed of variation signed by him could redirect his inheritance to, for example, the child, and legally has the effect that it wasn't left to him but the child.
........
However, this could be challenged in court. I know it's been done before (and I believe successfully) by local authorities  when people were trying to stop money left to them just ending up paying for care home costs. 

So, potentially the only way this would work would be subterfuge. Do the DoV, and then fill in all forms as to finances omitting this amount from the gm. It's quite easy to do a DoV so they could write one up tomorrow, get It signed and witnessed and then pass to whoever is doing probate. 
i suppose the other route is, since probate hasn't happened yet and might not for some months, Again full disclosure,  and as long as forms don't ask for any money that's due but not yet arrived, this might pass under the radar? Depends what the forms ask for. 

Marcon

If as you say it's a 'very small inheritance', is it really worth all the subterfuge suggested above?

Mojisola

I would do a deed of variation and pass the inheritance on to their child.

Would the other parent really make a big issue of a small inheritance being passed on to their child?

I could understand if it appeared that your relative was hiding money that they would then have access to but neither parent is going to benefit if it goes to their child.

AnotherJoe

Mickey666 said:

Is a deed of variation possible without the agreement of ALL beneficiaries?

I believe so, my understanding is a DoV needs to be signed by all affected beneficiaries. 

 

Malthusian

Inheritances can be excluded from the assets of the marriage if they haven't yet been intermingled with the couple's finances, and if the non-inheriting spouse doesn't need the money. The first is highly likely to be the case for an inheritance that hasn't even been paid yet. So I don't think the ex-spouse would have any claim. They don't have the same rights as a council or the DWP in a "deliberate deprivation" situation. Unless they needed the funds from the inheritance to look after themselves and the kid (if they have custody).

If as you say it's a 'very small inheritance', is it really worth all the subterfuge suggested above?

If it's a very small inheritance I can see why they want 100% to go to a family member rather than have 50% be lost to the family, even if it means getting none of it themselves rather than 50%. The fact that it's a very small inheritance makes them less likely to be bothered about losing their 50%.

No subterfuge should be needed.

*edit* The grandchild in question needs to discuss this with their solicitor immediately.

paitman

Thanks for all your comments
but as the ex wife refused to accept he’s entitled to 50% of the equity in the home
 I believe however little it is she will try to recoup anything back he gets 

Shelldean

Could the solicitor hold on to the inheritance until after his divorce is settled?
So he received it once everything with the ex wife is ended??

paitman

He has a solicitor for his divorce but I’m not sure if that’s who you mean 

I am just concerned as they have not exchanged financial details (Due 12/6 and in hands of solicitors to exchange) she could insist it is added, although we have no idea what it will be as probate hasn’t been applied for yet. 

As I said the funeral has not taken place and she’s asking about the property 

There are no solicitors for estate as the executors are dealing with it 

I believe the divorce will be finalised before the estate is, as she is pushing it and wants it done  quickly. 

Unless she thinks she will get something that might change. 

She gave him 4 weeks to leave before his grandparent died. 

Also as another grandson living in the property this will hold everything up especially due to the virus 

Malthusian

Shelldean said:

Could the solicitor hold on to the inheritance until after his divorce is settled?
So he received it once everything with the ex wife is ended??

He could but the ex could refuse to move forward with the divorce. Eventually it would get to the point that the inheritance is a known amount and it doesn't make any difference whether it's in the solicitor's bank account or his own.

It may already be a known amount if the legacy is pecuniary (a fixed amount) rather than residual (a percentage).

In itself, whether it's in the solicitor's bank account or his own won't change whether the money has become part of the marital assets (probably not) or whether the ex needs the money (no idea), which is what determines whether the inheritance will be included in the marital assets.

I'm not sure that DOVing the inheritance would accomplish anything. The OP has given no reason that it would be viewed as marital assets, although that's a question for the grandson's solicitor as we don't know anything about the ex's needs and the other assets to be divided. The grandson can either stick to their guns and refuse to share, or give the ex half in order to get it over with. It's the usual game of divorce chicken.

The worst case scenario is that the grandson gives up their inheritance, the ex argues that they needed half the inheritance (small as it is) to meet their needs, and the grandson ends up giving the ex half of it anyway out of their own pocket to avoid going to court. Or going to court and losing more in legal costs than half the inheritance.