Will

wallace7

My partner and I are not married, we own a house and business together we don't have wills (yet), he has a child (now an adult), I don't have children. We are in the process of thinking about getting wills. We intend to leave everything to each other in the advent of our death, however my partner wants a clause that on my death his share then goes to his son. Question: what would happen if I had to go into a home and my house had to be sold for my care? or what would happen if I moved house? or inherited money from my parents? I don't really understand how this works? 

MovingForwards

Server the property so you both own 50% each.
You can possibly do something similar with the business.
Your partner leaves a life interest to you, then on your death it passed to his child.
You have to decide what happens to your 50% if your partner dies before you do.

Depends on both your ages if you were to go into a home. Your partner's 50% would be safe, if you severed the tenancy.

Wills don't list the property address as an asset, due to people moving. They tend to refer to "the property owned on death".

An inheritance becomes yours. On your death it's part of your assets. If you want this left to someone else, keep it in a separate account and identify that in the will; just remember if this money is moved to another account the will has to be updated or the gift fails. Usually it's a case of I leave TSB account number 123456 to Jo Bloggs. 

Book an appointment with a solicitor, they will go through everything and more with you.

Keep_pedalling

As you are not married then it is absolutely vital that you get wills put in place as a matter of urgency. Do this properly through a solicitor you cannot afford to do this on the cheap. You should also get lasting powers of attorney put in place if you don’t have those already.

You should also consider getting married or forming a civil partnership. Unmarried couples with substantial assets face the possibility of a substantial IHT bill on the first death, and there are capital gains issues with providing an unmarried partner with a life interest in your home.

74jax

Is there a reason he doesn't want to leave his son anything direct?

What if the son faces bankruptcy, really could do with a helping hand to buy something or such like. He has to wait for you to die in the hope you leave him something?

What if you remarry and don't make a Will? 

I'm not sure why he thinks he can control what YOU do with YOUR money after his death, to leave HIS son, when he hadn't left his son anything. It would be your money.

I have a daughter, not my husbands. Whilst I have no hesitation he would continue to help her out after I die, I have made sure she inherits what I want her too. Its not left for her to wait for my husband to die, its not left in the hope he doesn't spend it all and leaves it to her.

She's my daughter, if I want her to inherit from me I make sure she does. Not my husband. 

wallace7

Thank you all for your thoughts:

74Jax: If he did that then I would be left owing half our house and half our business with his son! 

74jax

wallace7 said:

Thank you all for your thoughts:

74Jax: If he did that then I would be left owing half our house and half our business with his son! 

Only if that is what he left the son.

What I'm saying is, if he wants his son to inherit 'something', why is he leaving it up to you.

You could remarry, not make a Will, be hit by a bus, and it would go to your side and his son would get nothing.

He could die, you get everything, sell up and spend it all / go into care etc and the son gets nothing.

It's not up to you to make sure you can leave his son anything.  You might want to spend it /might be forced to pay for things. It's your money once he dies, not his.

If he wants to leave his son something that's up to him, not you. Once yours you can do what you like. 

wallace7

74jax said:

wallace7 said:

Thank you all for your thoughts:

74Jax: If he did that then I would be left owing half our house and half our business with his son! 

Only if that is what he left the son.

What I'm saying is, if he wants his son to inherit 'something', why is he leaving it up to you.

You could remarry, not make a Will, be hit by a bus, and it would go to your side and his son would get nothing.

He could die, you get everything, sell up and spend it all / go into care etc and the son gets nothing.

It's not up to you to make sure you can leave his son anything.  You might want to spend it /might be forced to pay for things. It's your money once he dies, not his.

If he wants to leave his son something that's up to him, not you. Once yours you can do what you like. 

I understand what you mean but we were thinking more like when a couple are married with children, everything gets left to the other when one of them dies and then subsequently to the children when the other dies if that makes sense. 

Mojisola

wallace7 said:

I understand what you mean but we were thinking more like when a couple are married with children, everything gets left to the other when one of them dies and then subsequently to the children when the other dies if that makes sense.

Others have given examples of how either the estate of the second to die can end up with someone else or could all be used up on care costs.

If the first to die gives the second the right to stay in the property for life (or sell it and use the money to move somewhere else), the survivor of the couple is protected and so is the inheritance of the descendant. 

The couple have to own the property as tenants in common for this to work.

sheramber

if your partner id dead and his share has passed to you there is no 'his share' to pass to his son. it is all yours to dispose of as you wish.

The only way to ensure the son gets whatever share your partner wants him to have is to leave it in trust, with his  son to inherit on your death.

You  need  to consult a solicitor who can advise of the options and make sure things are tied up properly.

TBagpuss

As others have said, the only way for your partner to ensure that his assets go to his son eventually would be for him to leave them to his son in his will, but to include provisions for you to have a life interest (e.g. you own 50% of the house, son owns the other 50% but you have the right to live there during your lifetime, so he doesn't get access to his 50% until your death).

With regard to the business, it would be more complicated - you and he would need to take advice. Is it a limited company or a partnership? 

Does he want his son to be able to run the business once you are both gone? Or simply to ensure an inheritance for his son? if it is the latter, then it might be worth his considering getting life insurance, with the son as the beneficiary, and leaving the business to you. that way, son gets a lump sum when his dad dies, you get to continue to run the business. Or he could leave son his interest in the house subject to your life interest and you and he could agree that you will leave the business to son on your death - this part wouldn't be a binding agreement but it would ensure that son is not left with nothing - in a worst case sscenario (if hs dad dies first) he gets dad's share of the house.

sheramber

If you were sole owner of the business but  become unable to continue to run the business (You could live into old age) what would happen to it?

What would happen to it?

Would you sell it or pass it to the son?