Passing on inheritance

poseidon1

Destiny_Angel62 said:

Thank you, I have looked up Deed of Variation, looks like it shouldn't be as complicated as I thought. 

DOV could certainly be the way to go in this circumstance.

However, if there is a notable deficiency in your own pension provision ( assuming you will be getting the full state pension in your own right) , consider whether you should be holding back some of the inheritance to enhance your own pension provision.

Failing that, best to make sure that if your current partner ( husband? ) predeceases you there will be sufficient top up widow's income from his resources  to ensure you will not be struggling going forward.

Estate planning for blended families can be stressful, so ensure you and your partner are on the same page with regard to what you intend to do with your inheritance and generally.

madbadrob

Brie said:

I think the way to do it is to get a variation on the will so that the money goes directly to your son.  That way it would never be considered yours so there won't be any deprivation of asset issues should you need council hlep to pay for care.  But others may know better.

My mother did this with my grandfathers estate and passed it directly to my brother and me.  This actually caused issues with the benefits she was claiming in so much as someone told the DWP that she had received money which would take her above the savings threshold.  She failed to do as we had said and have a DOV put in place.  We therefore had to tell the DWP we received the monies and show that money being placed into our account.  She was also warned that should she need care within the 7 year threshold that money could well be taken into account so unless they told her wrongly at that time I would check with a solicitor or CAB.

Could you not put it into a high interest account and in your will make it known that the money in account xxxxxxx is for the sole use of your son and free from IHT?  

Again I would speak to a solicitor or the Citizen advice bureau legal team to be certain you have the correct information.

Rob

SevenOfNine

We did a DoV, via a solicitor not DiY (though you can) as we wanted it legally watertight. In the grand scheme of things the cost of the DoV was worth it for peace of mind. No pitfalls or stumbling blocks we might not have thought of.

Newly_retired

In the long term, you could sever the tenancy on your home if you are joint tenants with your partner, and become tenants-in-common. Then each make new wills, leaving your share to your own offspring, But do it through a solicitor, making sure that everything is properly in place for the surviving spouse to be able to carry on living in the property, with certain conditions attached, but ultimately the children of each partner will benefit. You can also clarify how the rest of your estate is left. Check your pension rules, as normally that passes outside the estate. You may be able to nominate who is to receive it, but each company has its own rules.

Keep_pedalling

madbadrob said:

Brie said:

I think the way to do it is to get a variation on the will so that the money goes directly to your son.  That way it would never be considered yours so there won't be any deprivation of asset issues should you need council hlep to pay for care.  But others may know better.

My mother did this with my grandfathers estate and passed it directly to my brother and me.  This actually caused issues with the benefits she was claiming in so much as someone told the DWP that she had received money which would take her above the savings threshold.  She failed to do as we had said and have a DOV put in place.  We therefore had to tell the DWP we received the monies and show that money being placed into our account.  She was also warned that should she need care within the 7 year threshold that money could well be taken into account so unless they told her wrongly at that time I would check with a solicitor or CAB.

Could you not put it into a high interest account and in your will make it known that the money in account xxxxxxx is for the sole use of your son and free from IHT?  

Again I would speak to a solicitor or the Citizen advice bureau legal team to be certain you have the correct information.

Rob

Unless the OP is on means tested benefits (which seem unlikely) then this is not really an issue. In your mother’s case that was clearly a case of deliberate deprivation of assets leading to benefit fraud. 

elsien

And there is no time limit on deprivation of assets with regards to care. The seven-year rule is to do with tax only not to do with care costs.

Olinda99

There is no time limit, but the rule is that you must have know (or a reasonable person would have known) that you would need care in the immediate future when you gave away the assets.

Furtheremore the LA has to prove the reason - and sole reason - that  you gave those assets away was to enable you to claim means tested benefits

If you are in good health and there is no reason to suspect you might soon need care you can give away assets at any age.