second marriage and assets

markgparker

I am getting married for the second time, I own my house and when I pass away, I would like my future wife to stay living in the house until she passes away and then the house go to my children (All over 25). What is the best way to achieve this?

david29dpo

A well worded will.  mines the same

Exodi

Probably the simplest solution:

You make mirror wills, which effectively say you leave everything to each other, and then to your children once you both die. You could own the house as joint tenants or tenants in common, the outcome would be the same.

The problem with this, is that one may change their will whenever they choose - and we regularly see a concern that in this situation that if you were the pass away many years beforehand, and your spouse eventually became estranged from your children (or met someone else), they may decide to re-write their will and disinherit your children.

To remove this uncertainty, you could leave things to your children in advance, but structure your estate in a way that protects your spouse. This could include a lifetime tenancy on the property, or leaving the house to the spouse, but other assets to the children. You may then hope the spouse may leave the house to the children when she passes, but it is less important. This option also has downsides because it could mean forcing your spouse to distribute some/all of your liquid cash (e.g. pensions, investments, savings, etc) where she may require them.

Personally, I've never been a big fan of suddenly bestowing all of your assets as a windfall to your children when you die. Not only do you increase the likelihood your estate will be liable to pay IHT, but it also means you're giving them money when they likely need it least (e.g. in their 50s as opposed to their 20s or 30s when they might have been trying to buy a house and raise children). I think if you have money just sat in an easy access account waiting to eventually be bequeathed, better to gift it now (and then it reduces the challenges of requiring your wife to give her money to your children after you pass, or to request she hands your previously joint estate over to them).

elsien

What if your wife isn’t able to stay in the property?  Either her health  changes and she needs some more accessible, she can’t afford it (would your children be liable for the maintenance if technically the property is theirs?) oh she wants to downsize, or simply live somewhere else. You need to consult someone who knows what they’re doing to cover all those eventualities so that your wife is not left homeless or stuck somewhere that’s no longer suitable. 

Keep_pedalling

You should see a STEP solicitor to draw up a new will. This should include a clause that creates an immediate post death interest trust on your death. This will protect both your children’s inheritance and your wife’s long term security, and is tax efficient. The trust ends on your wife’s death with the option to end it on other events such as her marrying again. 

You do not need to wait to do this you can make a will in contemplation of marriage now. Your future wife should make hers as well.