Will Trust - sound advice needed please

Cammie50

My husband died recently and I am in the process of updating my Will. I went to a local Will Writer who has suggested I make a Will Trust. I have one daughter and one granddaughter who is 4 years old with Special Needs. My daughter and granddaughter would be my only beneficiaries. My daughter has a partner and they own a house together. He has two teenage children from his previous marriage whom he supports. 

I would like to ensure that my estate goes initially to my daughter then to my granddaughter should my daughter die. My concern is that if I leave everything to my daughter in a normal Will, then her partner may have a claim on her estate when she dies, leaving my granddaughter at risk of losing out on her inheritance. If he then dies, then his estate would be split between his 3 children and again my granddaughter would miss out. 

The Will Writer has recommended a Will Trust so that my estate is “Ring Fenced.” I understand that on my death, all assets would be put into a Flexible Life Trust which would allow my daughter to have access to the assets, then on her death my granddaughter would have access… but only at the Discretion of the remaining Trustee. It has been suggested that my daughter and a close family member are the named Trustees. 

As this is all new to me, I’d appreciate any advice from anyone with experience of this. Is it a sensible idea, or something that could cause future problems? All I want is to protect my daughter and granddaughter as best I can. 

Keep_pedalling

Personally I would get a second opinion, this time from a solicitor. Most will writing companies are unregulated and you or your beneficiaries have no comeback if they make a mess of something.

As long as your daughter makes a will, there is very little chance to no her partner who be able to successfully challenge her will.

Discretionary trusts are also subject to rather high tax rates.

lr1277

If the assets in the trust had any income or capital gains, then a tax return would have to be submitted. I don't know if a tax return would have to be submitted if there was no income or gains.

Say your granddaughter is the beneficiary of the trust and your daughter passes, who would be the trustee of the trust and would they be willing to do the legwork like ensuring your granddaughter gets her money in a timely fashion and submitting tax returns?

You should also think (and this is a horrible situation I know) what happens if your daughter and granddaughter pass within a short time of each other (car accident say), then who gets your assets.

Just some thoughts.

Phil4432

Once you give or leave money/property, you can't really control what happens with it.

Whatever becomes your daughters, you must trust her to do her best with it.  You could of course leave some of it to your granddaughter, but how do you know she wont get married to the wrong person? 

Does your daughter have a bad marriage?  Is there a reason that you think her husband might wish to take her money?

xylophone

It would be wise to consult a solicitor with expertise in wills and trusts.

https://content.step.org/step-directory

https://www.gov.uk/trusts-taxes/trusts-for-vulnerable-people may be worth a read.

Cammie50

Thank you xylophone. Appreciate your advice. That’s what I shall do.