Trust Wills

phoebe03cat

Hi ..we have our trust will and Poas ready to sign next week, with our solicitor who created them. Our Poas are our two adult children. We are separating our house ownership to tenants in common at the same time. After listening to Martins podcast and threads on here it would appear that we know very little about what happens after the second person finally passes away and if things would be straightforward for our POA (trustees)children to administer or would we have made life more difficult for them? So our concerns are : What do we have to do when the FIRST person dies and who would be involved? Could anyone give us a rough idea please of the costs involved and any ongoing costs/liabilities for the trust members?  How straightforward would it be for our POA children after the final death? We have been advised that the creation of a will trust will protect half the house from possible care fees, any cons to this action. The last thing we want to do is to shore up problems for our two children after our death which may affect their own lives. We are all aware of their responsibilities once the trust is activated. 

poppystar

What type of trust are you referring to? If it’s an immediate post death interest trust then it would be quite simple to do. Any other trust might end up quite complicated. 

Also POA ends on death so it is your executors who will deal with the estate. I assume you have appointed the same children as executors?

RAS

Did the solicitor explain to you that any trust needs to be registered with HMRC? If this is an IPDI as poppystar suggests, it needs to be registered after the death of the first spouse.

Do you also appreciate that if the surviving spouse remarries, that invalidates their will (whatever your current wills say)? But that an IPDI trust protects half the value of the property for the remaindermen, the children in this case.

Who are the trustees according to the will (it should specify this) and who are your executors?

I'd strongly suggest that you need to ask your solicitor to check your assumptions about any will you are going to sign, and seek clarification on anything you do not understand.