How to make a will safeguarding my Childrens inheritance?

SameOldRoundabout

I’m not sure if this is the right forum really but I can’t find a better option! I will preface by saying we have an app booked with our FA for the end of the month to discuss this but I don’t really even have any ideas of what to say to her I want. 

So, long story short, I am currently battling cancer. The type means it is likely to get me in the end and mean I probably won’t live out a natural life span. I’m only 37 and with the arrogance of youth hadn’t made a will. 

I am married with 5 children, 1 of whom is with my husband. We own a house with approx £200k equity at the moment. They are all under 18 and will continue to live here in the event of my passing until such time as they want to move out. 

In my ideal scenario, if I were to die first, I would want “my” half of the equity left to my children when my husband dies. However I do not want to trap him in this house or prevent him from moving etc. I want him to have full use of my equity while he is alive but to somehow safeguard my share (at current value I suppose) being left equally between my 5 children when he passes on. He fully intends to make a mirror will so all 5 would get the full amount on his death but we all know the future is unpredictable and he may move on and remarry or whatever. If he were to change his will to include a new wife etc I would not want “my” money to be spread like that if that makes sense? 

Is what I’m saying possible? Thanks 

Albermarle

Sorry to hear of your situation. You will probably be better off posting your questions here.
Deaths, funerals & probate — MoneySavingExpert Forum

Personally I think you need a good solicitor/will writer, rather than a financial advisor.

Andy_L

You would be looking at setting up some sort of Trust to hold your half of the house which then grants your Husband a life interest in it.

As Albermarle said you need a solicitor - although I don't think a will write can set up the trust, you would need a lawyer

xylophone

Presumably you and your spouse own the property as tenants in common?

If not, and you own it as joint tenants, you will need to sever the joint tenancy so as to own it as tenants in common.

You will then be able to leave your husband a life interest in the property (with a clause to permit  sale/replacement etc) with ultimate ownership passing to your children.

You and your spouse should both make wills that cover the guardianship of your children should you both pass away before they reach their majority.

You should consult a solicitor expert in wills and trusts and do some research (Immediate post death life interest trust) before your meeting.

https://www.step.org/about-step/public

SameOldRoundabout

Thank you all, very helpful advice. I see we will probably need a solicitor for something so complex. Thanks very much! 

NannaH

Is your life insurance written in trust?    

SarahB16

SameOldRoundabout said:

I’m not sure if this is the right forum really but I can’t find a better option! I will preface by saying we have an app booked with our FA for the end of the month to discuss this but I don’t really even have any ideas of what to say to her I want. 

So, long story short, I am currently battling cancer. The type means it is likely to get me in the end and mean I probably won’t live out a natural life span. I’m only 37 and with the arrogance of youth hadn’t made a will. 

I am married with 5 children, 1 of whom is with my husband. We own a house with approx £200k equity at the moment. They are all under 18 and will continue to live here in the event of my passing until such time as they want to move out. 

In my ideal scenario, if I were to die first, I would want “my” half of the equity left to my children when my husband dies. However I do not want to trap him in this house or prevent him from moving etc. I want him to have full use of my equity while he is alive but to somehow safeguard my share (at current value I suppose) being left equally between my 5 children when he passes on. He fully intends to make a mirror will so all 5 would get the full amount on his death but we all know the future is unpredictable and he may move on and remarry or whatever. If he were to change his will to include a new wife etc I would not want “my” money to be spread like that if that makes sense? 

Is what I’m saying possible? Thanks 

I'm so sorry to hear this however there are always new trials and you just never know.  Never give up hope.  If you haven't come across the 'Health Unlocked' forums I would encourage you to take a look.  The NHS website and app when you search for a condition provide links to the relevant Health Unlocked page.  Of course it's easier to just go directly to the Health Unlocked website and type your details into the search bar and then go to the relevant forum.    

Fermion

As xylophone says you should consult an expert in Estate and Wills planning who is a STEP member. You need to be careful though as the majority of Solicitors who write family WILLS are not STEP. Our family used a local specialist Estate and Will planning company called Union Estate Planning https://www.unionep.co.uk/index which has some good information on their website but there are many STEP accredited organisations around the country. In terms of initial actions you need to make sure that your property is held as  "Tenants in Common" (50/50) and also that you have Lasting Power of Attorneys (LPoA) in place for both Financial affairs and Health & Welfare. 

bostonerimus

If you leave assets to your children rather than having everything pass by default to your spouse you'll get the inheritance to your children, but this might have inheritance tax issues and limit the assets and capital available to your surviving spouse. So I think this is probably a situation where a trust might be useful. Your situation is not uncommon and so an estate lawyer will be able to help you. You will have to look at how your property is owned and probably do something to separate/sever ownership. 

You should also consider how you want the inheritance to be organized if one of your children dies ie do you want it split between the remaining children or to be passed down to the deceased's descendants ie per stirpes.

claire111

Sorry for your situation. My mum and dad have just done exactly this using a local Will Writer https://www.heir-tight-wills.co.uk  based in Kent. They couldn't praise her highly enough and she left absolutely no stone unturned and covered situations they couldn't have imagined. I think they paid £1,700 or thereabouts for mirror wills which included severing the joint tenancy and making provision to minimise inheritance tax with the use of trusts. When the time comes we will need to appoint someone to execute the will professionally and there will be a further cost attached to that. HTH

Albermarle

and making provision to minimise inheritance tax with the use of trusts. 

Normally the main beneficiary in this situation, is the lawyers and their fees for setting up and administering the trusts. It is usually far more hassle than it is worth, and the IHT savings can be marginal.

This is unrelated to the OP's situation, where there is a genuine need to set up a trust.