Codicil or new will?

Hal17

I am looking for some advice please? My wife and I have mirror wills, so very straightforward. When we both pass our estate is split equally between our two children. We have two new grandchildren and would like to leave them a specific sum from our estate. Can I add this new instruction as a codicil to my original will or do I need to get two new wills drawn up. Not intending to have any instructions regarding trusts or age limits. I trust my two children to ensure the money is used for the benefit of the grandchildren as they think appropriate. 

Ms_Chocaholic

Is this wise? Are both grandchildren to the same child.  If not is there any chance that there may be other grandchildren.  If so, you might end up changing your will every time a new grandchild arrives and then what happens if you or your wife are unwell/lose capacity and not in a position to change your will and then a new grandchild arrives.

Brie

Maybe instead of specific amounts (other posts have warned against them) perhaps you could state something like "after 80% of my estate has been distributed to my children the remaining 20% is to be split evenly amongst any of my grandchildren."  

That way if you have only £1k left when you kick the bucket there's no squabbling over the fact that you have left £800 each to the 2 grandkids and nothing to the 10 subsequent ones or to either of your children..

Hal17

Thank you for the prompt reply and your insight. It is one grandchild per sibling and no more expected. We were just planning on telling our children to give £X to them both and we very much expect that would just happen without it being included in our wills. We were just thinking that something in writing might be helpful. Hence the codicil addition.

Ms_Chocaholic

I wouldn't bother.  How much are you thinking of leaving them in your will - give it to them now.

Hal17

Ha ha - thanks Ms_Chocaholic that makes perfect sense when you hear it from someone else. We were planning on doing something with regard to school fees in the next few years, I think just give them the money as you say. Keep it simple. Really appreciate your input.

getmore4less

If the beneficiary is a minor you don't get a choice of not using a trust 

Telling your kids to give some to their kids just that, will they?

Sticking that in a codicil is the same as putting it a will.

New wills are better these days as it should be the same work and less chance of misunderstanding.
(Had a qualified solicitor get one wrong).

Is the legacy first death, second death or both deaths?

Hal17

Thanks Brie, that is a very good idea and those percentage would work really well. Thanks again for the two viewpoints, has really helped me clarify my thoughts. 

Ms_Chocaholic

While we're on the subject of wills, do you own your own home? How? Joint tenants or TIC.  You might want to change your will to help benefit your children/grandchildren.

SevenOfNine

We did as Ms_C has suggested, our 2 grandsons are not in our will but we have savings accounts for them & we are trustees of those. We also paid their first year of school fees.

Anything you write in the will now, you'll have to revise if necessary at intervals, as circumstances & estate value changes (up or down), grandchildren now may be grown with children of their own by the time you pop your clogs.

My late mum left a set amount to grandkids. In 1993 when my dad died & she had her will re-done, I suppose £250 each to young kids was enough, she still had a small mortgage on her ex council house, bought for £4k & not cash rich.

For sure she wouldn't have meant a measly £250 to happen, the end estate value was £300k. Me &1 brother 'shared' straight away, but I had to bully & guilt trip the other to share with his daughter, tight g!t.

Difficult to decide what's best. My choice different to my mum, & in-laws chose to split their estate, 1/2 between their sons & other 1/2 between grandkids "surviving at their deaths". THAT didn't allow for any pre-deceasing who might have had children of their own by then.

I suppose all options might have potential pitfalls we don't anticipate.

Keep_pedalling

You seem happy for them to get that money at 18 which simplifies things somewhat, so you could do what we have done and fund a S&S JISA for each grandchild, which we top up each birthday. 

If your joint estates are in excess of £1M then gifting is a good way of reducing any IHT liability your estate has so gifting money for school fees in advance of them actually being required should be considered. That money can go into a trust or, if you are happy to trust you children to make sure it is used for fees then gift it directly to them, which would avoid the complications associated with managing a discretionary trust.