Will

getmore4less

wallace7 said:

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? 

This has significant IHT consequences as there are no transferable nil rate bands.

If either estate is over £325k there will be IHT on first death and the estate of the survivor will grow and that estate will also have IHT if over £325k  if it is your partner second  then they may have a RNRB(only1) to add on.   


Life interest trusts do not help with this as the life tenant in effect owned the share and it is counted within their estate.

Keep_pedalling said:

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.

you are going to need to explain why you think that.

The life tenant in effect owns the share and it qualifies for PRR.

In this scenario there is a nasty interaction with the residential nil rate band should the one with the child die first. 

Keep_pedalling

getmore4less said:

wallace7 said:

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? 

Keep_pedalling said:

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.

you are going to need to explain why you think that.

The life tenant in effect owns the share and it qualifies for PRR.

In this scenario there is a nasty interaction with the residential nil rate band should the one with the child die first. 

Apologies. Your are quite right my error.

The OP should still get married though.