Estate Planning - lifetime interest

Cornish_mum

I have recently been diagnosed with a life limiting illness (mother of 2 children age 13 and 8 and very happily married).

I have been advised by my solicitor to consider leaving my share of our home directly to my children with my husband having a life interest in the property (and it’s capital value); in case my husband remarries after my passing, to ensure that my children are provided for as is my intention.

Is there anything I should consider regarding this, that I should discuss with my solicitor?

Brie

Sorry to hear about this.  Obviously it must be a distressing time for all of you and hard to be thinking of such eventualities.  

Only thing I can think of is that this would stop your children benefiting from any first time buyer perks.  But that seems less significant for them under the circumstances than it does in other instances where parents are considering putting a child's name on the deeds of a property.  

Flugelhorn

Brie said:

Sorry to hear about this.  Obviously it must be a distressing time for all of you and hard to be thinking of such eventualities.  

Only thing I can think of is that this would stop your children benefiting from any first time buyer perks.  But that seems less significant for them under the circumstances than it does in other instances where parents are considering putting a child's name on the deeds of a property.  

isn't this one of those cases where there is an IPDI trust that owns half the property and the children don't lose FTB rights etc? 

Brie

Flugelhorn said:

Brie said:

Sorry to hear about this.  Obviously it must be a distressing time for all of you and hard to be thinking of such eventualities.  

Only thing I can think of is that this would stop your children benefiting from any first time buyer perks.  But that seems less significant for them under the circumstances than it does in other instances where parents are considering putting a child's name on the deeds of a property.  

isn't this one of those cases where there is an IPDI trust that owns half the property and the children don't lose FTB rights etc? 

Quite possibly but a good thing to get confirmed by the solicitor.  As well as what happens to the children's share should their father decide to sell up and move elsewhere when they are still young.

Cornish_mum

Many thanks for your comments, very helpful to clarify theses points with the solicitor.

CM

Keep_pedalling

Sorry you find yourself in such a horrible situation. Personally I would not do it with such young children and the trust having to remain in place for decades it will make life so much more complicated for your husband. Do you really thing there is a big risk of your husband doing this either deliberately or accidentally through not making a new will if he remarried?

LinLui

Keep_pedalling said:

Sorry you find yourself in such a horrible situation. Personally I would not do it with such young children and the trust having to remain in place for decades it will make life so much more complicated for your husband. Do you really thing there is a big risk of your husband doing this either deliberately or accidentally through not making a new will if he remarried?

I think it very wise to consider the future of her children. It has nothing to do with trusting or not trusting her husband. It has everything to do with the fact that over those decades he may well remarry once or more times, have more children, go into care etc. It is not about him being "bad" but about the fact that life moves on but she wants some security for her children in that scenario. 

OP, I can't advise you on this but I wish you well. I have a friend in a similar position, and to date she is defying the odds, so I hope you will too. But you are quite right to plan for a future you may not see, to ensure your children's security.

GDB2222

LinLui said:

Keep_pedalling said:

Sorry you find yourself in such a horrible situation. Personally I would not do it with such young children and the trust having to remain in place for decades it will make life so much more complicated for your husband. Do you really thing there is a big risk of your husband doing this either deliberately or accidentally through not making a new will if he remarried?

I think it very wise to consider the future of her children. It has nothing to do with trusting or not trusting her husband. It has everything to do with the fact that over those decades he may well remarry once or more times, have more children, go into care etc. It is not about him being "bad" but about the fact that life moves on but she wants some security for her children in that scenario. 

OP, I can't advise you on this but I wish you well. I have a friend in a similar position, and to date she is defying the odds, so I hope you will too. But you are quite right to plan for a future you may not see, to ensure your children's security.

The trust does complicate things a bit, but the youngest child is 8, so the family can agree to break the trust in 10 years time if they wish . 

That flexibility does depend on the way the trust is drafted, so I suggest discussing this with the solicitor. Left to his own devices he might otherwise draft a trust that includes provision for as yet unborn grandchildren. 

Cornish_mum

Many thanks to all who have commented, I will discuss with my solicitor. I fully expect my husband to live for another 40 years and know that an awful lot can happen in this time. CM

GDB2222

It might seem unromantic, but the more happily you have been married the more likely the surviving spouse is to remarry.