Blended family - you name it, Ive a question!

ChickenLicken12

Hoping this is the correct place to post 

This is our story:
History:

Wife (me): 
I was widowed - late spouse left all to me - estate didn’t exceed thresholds. 
We had 2 children 
I remarried. 
I entered new marriage with one property. 
I bought a new property with new husband. 

New Husband: 
He bought house. 

He met and lived with partner who had a toddler. 

The child was born in EU country and both mum and biological father were from that EU country
Biological father refused the opportunity for any adoption. 
My husband split from partner after 10 years 
He continued to be a dad and 25 years on father - daughter relationship continues and is as strong now as any such relationship  
On turning 18 she changed her name to my husband’s by deed poll as there is no adult adoption in UK. 

Now: 

Between us we have three properties. 

The marital home and the two properties we each had when we got married. 

Questions: 
1) does the IHT allowance from my late husband transfer over to me? 

2) my husband wants to leave his property (and their former family home) to his “daughter”.  should he die first can we assign his IHT allowance to her so she reduces her IHT bill? 

Or is any allowance in one big melting pot and it’s relevant to the “estate” rather than what’s left to whom? 

3) we want to leave a third of the marital property to each child. Would my two children be exempt from IHT as they have both my and my late husband’s IHT allowance?

4) Does my step daughter need to become a British Citizen to allow her to inherit the house and her part of the marital home (this was the house she was brought up in so her family home) 

5) Does the fact my step daughter changed her name to my husband’s the moment she reached 18, had had no contact with biological father who refused any adoption and has been brought up by my husband since the age of three and has been her Dad ever since then count for anything in the eyes of the law and inheritance? 

Or should we just sell and go on lots of holidays … ?? 

Thanks 

Brie

As I understand it......

1) does the IHT allowance from my late husband transfer over to me? yes

2) my husband wants to leave his property (and their former family home) to his “daughter”.  should he die first can we assign his IHT allowance to her so she reduces her IHT bill? 

Or is any allowance in one big melting pot and it’s relevant to the “estate” rather than what’s left to whom? yes - she doesn't have an IHT bill as that is attached to the estate not to the beneficiaries.

3) we want to leave a third of the marital property to each child. Would my two children be exempt from IHT as they have both my and my late husband’s IHT allowance?  It will depend on how much the estate is worth if there is any IHT but as above that should come out of the estate rather than be paid by any beneficiaries although obviously if there's property and no money then someone will have to pay for it somehow.

4) Does my step daughter need to become a British Citizen to allow her to inherit the house and her part of the marital home (this was the house she was brought up in so her family home) No.  

5) Does the fact my step daughter changed her name to my husband’s the moment she reached 18, had had no contact with biological father who refused any adoption and has been brought up by my husband since the age of three and has been her Dad ever since then count for anything in the eyes of the law and inheritance?   She is not his step daughter.  She is a child that he has raised.  She has no standing within interstacey as she isn't related by blood and has not been adopted.  Doesn't matter what she calls herself it doesn't change anything (though personally I quite understand why she might want his name)

Or should we just sell and go on lots of holidays … ??   YES!!

And a question back - are all the properties somewhat equal in value?  Were you planning on giving house A & B to your sons and house C to his daughter?  Obviously it is very unlikely you will both die at the same time so any will would need to take that into account and so you might suggest that property needs to be sold and cash goes to beneficiaries or similar.  And obviously should one of you die and the other inherit all the property there's nothing to say the surviving spouse can't then change their will to say whatever they want.  But a solicitor would find the right wording to help ensure this isn't a problem for you.

Newly_retired

Duplicate thread in Deaths, Wills, Probate Board

ChickenLicken12

Newly_retired said:

Duplicate thread in Deaths, Wills, Probate Board

Sorry about that. I lost it - so reposted but it wasn’t in the right place - basically trouble navigating the forum - have tried to delete but cant

silvercar

ChickenLicken12 said:

Newly_retired said:

Duplicate thread in Deaths, Wills, Probate Board

Sorry about that. I lost it - so reposted but it wasn’t in the right place - basically trouble navigating the forum - have tried to delete but cant

I’ll close this one. You can continue the conversation on the other one that can be found here: https://forums.moneysavingexpert.com/discussion/6588627/blended-family-iht-wills-you-name-it#latest