Keeping assets close to bloodline

Keswick1uk

I'm helping someone think about their options for a will. I'll not be a beneficiary in any of this. I think he needs legal advice rather than write a simple will himself.

This person is in ill health themselves and may inherit a house soon. Whilst they are living they will rent the house to give them a income which will be helpful especially if they cannot work.

However they want to write their will to leave the use of the house for their wife to live in or rent or sell and invest.

However he wants to ensure the asset then passes to his niece and nephew who are the bloodline of the current house owner. This is because he has no children. His new wife does have 3 grown up children which he has had nothing to do with.

Does he need to approach a solicitor and ask about wills and discretionary will trusts or lifetime interest trusts?

RAS

He really does need to see a solicitor because without information about all his assets, it's difficult to tell.

How is the house owned? What provision would he make for his wife? If he doesn't, the will might be challenged. 

Etc, etc. He needs to talk to a solicitor.  

Sea_Shell

Keswick1uk said:

I'm helping someone think about their options for a will. I'll not be a beneficiary in any of this. I think he needs legal advice rather than write a simple will himself.

This person is in ill health themselves and may inherit a house soon. Whilst they are living they will rent the house to give them a income which will be helpful especially if they cannot work.

However they want to write their will to leave the use of the house for their wife to live in or rent or sell and invest.

However he wants to ensure the asset then passes to his niece and nephew who are the bloodline of the current house owner. This is because he has no children. His new wife does have 3 grown up children which he has had nothing to do with.

Does he need to approach a solicitor and ask about wills and discretionary will trusts or lifetime interest trusts?

Can a will even cover both the bits in bold?

Keswick1uk

Fair enough I'll get him to speak to a solicitor about what he can do. I thought it sounded like it was getting a bit complicated! 

In real life it makes more sense. He does want his wife to enjoy it in her lifetime just then leave it to his niece and nephew who he is close to, not her grown children who he is not.

Boat_to_Bolivia

Definitely need to see a solicitor.

p00hsticks

Sea_Shell said:

Keswick1uk said:

I'm helping someone think about their options for a will. I'll not be a beneficiary in any of this. I think he needs legal advice rather than write a simple will himself.

This person is in ill health themselves and may inherit a house soon. Whilst they are living they will rent the house to give them a income which will be helpful especially if they cannot work.

However they want to write their will to leave the use of the house for their wife to live in or rent or sell and invest.

However he wants to ensure the asset then passes to his niece and nephew who are the bloodline of the current house owner. This is because he has no children. His new wife does have 3 grown up children which he has had nothing to do with.

Does he need to approach a solicitor and ask about wills and discretionary will trusts or lifetime interest trusts?

Can a will even cover both the bits in bold?

I can't see why not. The house, or proceeds from selling the house, could be left in a lifetime trust for the wife, with the wife either living in the property, renting it out and keeping the rental income or selling it and deriving some sort of income from the sale proceeds. THe niece and nephew would then inherit either the house or the invested money on the death of the wife.   

The details of who ensures that the house is maintained properly and pays for it  (if kept) or how the sale proceeds are invested and what income the wife would be entitled to from it (if sold) would require quite a bit of thinking about and documenting, but I imagine they're scenarios that aren't that uncommon and solicitors experienced in will-writing would know how to address.

Sea_Shell

But it (a trust) could restrict the enjoyment/use/spending power of the asset (following it's sale), if the wife had to "protect" the asset for the niblings.


So it comes down to how much "enjoyment" he wants his wife to have from the asset during her lifetime.

What if she needs to spend a significant portion of the liquidised asset to enhance or preserve her [quality of] life.    

Will she be forever restricted to "growth" only??

Marcon

Keswick1uk said:

I'm helping someone think about their options for a will. I'll not be a beneficiary in any of this. I think he needs legal advice rather than write a simple will himself.

This person is in ill health themselves and may inherit a house soon. Whilst they are living they will rent the house to give them a income which will be helpful especially if they cannot work.

However they want to write their will to leave the use of the house for their wife to live in or rent or sell and invest.

However he wants to ensure the asset then passes to his niece and nephew who are the bloodline of the current house owner. This is because he has no children. His new wife does have 3 grown up children which he has had nothing to do with.

Does he need to approach a solicitor and ask about wills and discretionary will trusts or lifetime interest trusts?

No. He needs to approach a solicitor and explain in layman's terminology what he wants to achieve - writing it down beforehand, in simple language, will maximise the chances of the solicitor getting the right picture/asking any necessary questions. It will then be for the solicitor to explain the options.

Keswick1uk

Thanks everyone. I can see where us trying to find an answer has clouded the story.

I would imagine this isn't a completely unusual situation with today's various blended families. But understand he does need legal advice its not just a simple will writing exercise.

As he said to me he wants to look after the three people in life he loves (the fourth he is about to lose - that's where the house will be inherited from). But if there are rules on what he leaves his wife,  he will for sure. They are both (nearly) pensioners.