Looking for advice on Wills etc

DoneWorking

Newly_retired said:

Whilst I would certainly use a STEP solicitor to make the wills, there is no need to name them as ( joint) executors. The excutor can use a solicitor for advice or certain actions, which will be much cheaper and quicker than making a solicitor executor.
We had an IPDI trust to ensure that the house will eventually go to all children from our blended marriage. Money well spent there.

Do you think it would be ok to use one of the Charity appointed Solicitors to set up my will 
These are usually free
And they check and guarantee the will is legal
Plus you can leave a gift for them .

I would then consider appointing the two adult children as executors with the understanding that they could seek legal help should they need this.
They are both competent experienced administrators.

I like the idea of the IPDI Trust Option
Would this meet my requirements
Or should I consider other Trust options too.

We will probably set up powers of attorney ourselves 
Is this usually ok to do 

Or is it worth paying for peace of mind 

Smudgeismydog

DoneWorking said:

Cobbler_tone said:

My mother and father-in-law created a Trust, after a lovely visit from the Co-op to a WI meeting. No-one else knew about it. The mother-in-law passed away on NYD. Between setting up the trust and now sorting out the trust and financial affairs they have spent approaching £20,000, which is around 25% of the value of the current assets being passed to them (the FIL doesn't want anything)...without the house of course, because that is in trust. There are just two children splitting everything. Over 9 months later and they are no nearer to getting her affairs settled.
From my limited exposure to them, certain trusts seem more hassle and expense than what they are worth.
I'd also find a trusted local solicitor to draft a will.

With my parents I have zero knowledge of anything, so that will probably be a different set of issues to navigate at the worst possible time.

What is a FIL
Thanks 

Father in Law

Yorkie1

DoneWorking said:

Newly_retired said:

Whilst I would certainly use a STEP solicitor to make the wills, there is no need to name them as ( joint) executors. The excutor can use a solicitor for advice or certain actions, which will be much cheaper and quicker than making a solicitor executor.
We had an IPDI trust to ensure that the house will eventually go to all children from our blended marriage. Money well spent there.

Do you think it would be ok to use one of the Charity appointed Solicitors to set up my will 
These are usually free
And they check and guarantee the will is legal
Plus you can leave a gift for them .

I would not risk it, given the relative complexities involved in getting the wording wrong with the clause which creates the IPDI, the discussions which need to be had about those details, and the question of determining how the house is held (joint tenants, or tenants in common).
You can leave a gift to the charity in your will even if you don't use that route to drafting it 

I would then consider appointing the two adult children as executors with the understanding that they could seek legal help should they need this.
They are both competent experienced administrators.
That makes sense, as previously advised, whoever you eventually get to draft your will

I like the idea of the IPDI Trust Option
Would this meet my requirements
Or should I consider other Trust options too.
As you can see from the name, the IPDI (Immediate Post Death Interest trust) only comes into effect on the death of the first owner. 
When writing the wills, both owners create a document which says each owns 50% (or whatever alternative proportion is agreed). This means that each part can be given away in the will, rather than automatically going to the other owner if they are Joint tenants.
With an IPDI, each person's will essentially says that they give their part of the property to both children, but that after the first person's death, the other owner has the right to live there during their lifetime (as I referred to above, there are additional clauses which deal with what happens if they move house, go into a care home, sell the property - what happens to the sale proceeds and/or income from them such as interest, and who pays for repairs and insurance etc).
It is only when the second person dies, that the children's ownership comes into operation. They are not part owners while the second person is still alive.

No need for other trust options. They are expensive, rarely appropriate, and create ongoing tax and administration issues from their start. Avoid.

We will probably set up powers of attorney ourselves 
Is this usually ok to do 
See others' comments. It's relatively straightforward but it is vital to ensure that they are signed in the correct order. 
There are two types: health, and financial / property. Best to consider getting both done.
You will need to consider whether you want your children to act jointly (both must agree and be involved in each decision / action), or "jointly and severally", which means that one can act on their own if necessary / desired.

Or is it worth paying for peace of mind 

Best to pay for peace of mind, in my opinion.

Keep_pedalling

DoneWorking said:

Cobbler_tone said:

My mother and father-in-law created a Trust, after a lovely visit from the Co-op to a WI meeting. No-one else knew about it. The mother-in-law passed away on NYD. Between setting up the trust and now sorting out the trust and financial affairs they have spent approaching £20,000, which is around 25% of the value of the current assets being passed to them (the FIL doesn't want anything)...without the house of course, because that is in trust. There are just two children splitting everything. Over 9 months later and they are no nearer to getting her affairs settled.
From my limited exposure to them, certain trusts seem more hassle and expense than what they are worth.
I'd also find a trusted local solicitor to draft a will.

With my parents I have zero knowledge of anything, so that will probably be a different set of issues to navigate at the worst possible time.

What is a FIL
Thanks 

Father in law.

Cobbler_tone

We are about to sort some much needed wills (the OH updating hers...mine afresh) with a trusted local solicitor we have both used before for stuff.
My OH owns the house, we are not married and I have no assets of note, apart from a good pension (50% better than hers) which falls outside of the will. I have older children who are at uni/live with their mum, she has none. I don't see a lot being in mine and probably marriage is the best protection all round....old romantic! It is more about the house and making sure I am not homeless. She wants me to remain in the house (if it went that way) and then to her named charities. Be interesting to see what the solicitor recommends. She is all over my EoW forms (if it went that way) but at the mercy of the Trustees at the moment and think we'd struggle to demonstrate she is financially dependant on me. Our arrangement for the past 2 years we have lived together has been me buying all the shopping and that's about it. She will give up work next year and I will contribute more then. I will gift money to my kids upon retirement in the next couple of years, with the message..."anything else is a bonus"
Possibly quite complicated but nothing compared to some peoples situations. We just want each other to be OK.

Keep_pedalling

Cobbler_tone said:

We are about to sort some much needed wills (the OH updating hers...mine afresh) with a trusted local solicitor we have both used before for stuff.
My OH owns the house, we are not married and I have no assets of note, apart from a good pension (50% better than hers) which falls outside of the will. I have older children who are at uni/live with their mum, she has none. I don't see a lot being in mine and probably marriage is the best protection all round....old romantic! It is more about the house and making sure I am not homeless. She wants me to remain in the house (if it went that way) and then to her named charities. Be interesting to see what the solicitor recommends. She is all over my EoW forms (if it went that way) but at the mercy of the Trustees at the moment and think we'd struggle to demonstrate she is financially dependant on me. Our arrangement for the past 2 years we have lived together has been me buying all the shopping and that's about it. She will give up work next year and I will contribute more then. I will gift money to my kids upon retirement in the next couple of years, with the message..."anything else is a bonus"
Possibly quite complicated but nothing compared to some peoples situations. We just want each other to be OK.

How much is her estate worth? If it is over £325k then you could be forced to sell to pay its IHT liability if you don’t have liquid assets to cover it. Getting married or becoming cilvil partners will avoid that happening.

Cobbler_tone

Keep_pedalling said:

Cobbler_tone said:

We are about to sort some much needed wills (the OH updating hers...mine afresh) with a trusted local solicitor we have both used before for stuff.
My OH owns the house, we are not married and I have no assets of note, apart from a good pension (50% better than hers) which falls outside of the will. I have older children who are at uni/live with their mum, she has none. I don't see a lot being in mine and probably marriage is the best protection all round....old romantic! It is more about the house and making sure I am not homeless. She wants me to remain in the house (if it went that way) and then to her named charities. Be interesting to see what the solicitor recommends. She is all over my EoW forms (if it went that way) but at the mercy of the Trustees at the moment and think we'd struggle to demonstrate she is financially dependant on me. Our arrangement for the past 2 years we have lived together has been me buying all the shopping and that's about it. She will give up work next year and I will contribute more then. I will gift money to my kids upon retirement in the next couple of years, with the message..."anything else is a bonus"
Possibly quite complicated but nothing compared to some peoples situations. We just want each other to be OK.

How much is her estate worth? If it is over £325k then you could be forced to sell to pay its IHT liability if you don’t have liquid assets to cover it. Getting married or becoming cilvil partners will avoid that happening.

It would be over that but not by too much, maybe £450k. It wouldn’t be an issue as I have a good wage and access to cash from my pension if needed. When I retire in a year or two I’ll have options around significant lump sums and a healthy pension. I think we’ve realised getting married solves many potential issues.

Keep_pedalling

Cobbler_tone said:

Keep_pedalling said:

Cobbler_tone said:

We are about to sort some much needed wills (the OH updating hers...mine afresh) with a trusted local solicitor we have both used before for stuff.
My OH owns the house, we are not married and I have no assets of note, apart from a good pension (50% better than hers) which falls outside of the will. I have older children who are at uni/live with their mum, she has none. I don't see a lot being in mine and probably marriage is the best protection all round....old romantic! It is more about the house and making sure I am not homeless. She wants me to remain in the house (if it went that way) and then to her named charities. Be interesting to see what the solicitor recommends. She is all over my EoW forms (if it went that way) but at the mercy of the Trustees at the moment and think we'd struggle to demonstrate she is financially dependant on me. Our arrangement for the past 2 years we have lived together has been me buying all the shopping and that's about it. She will give up work next year and I will contribute more then. I will gift money to my kids upon retirement in the next couple of years, with the message..."anything else is a bonus"
Possibly quite complicated but nothing compared to some peoples situations. We just want each other to be OK.

How much is her estate worth? If it is over £325k then you could be forced to sell to pay its IHT liability if you don’t have liquid assets to cover it. Getting married or becoming cilvil partners will avoid that happening.

It would be over that but not by too much, maybe £450k. It wouldn’t be an issue as I have a good wage and access to cash from my pension if needed. When I retire in a year or two I’ll have options around significant lump sums and a healthy pension. I think we’ve realised getting married solves many potential issues.

£50k in tax that can be easily avoided is pretty substancial in most people’s book. 

Cobbler_tone

Keep_pedalling said:

Cobbler_tone said:

Keep_pedalling said:

Cobbler_tone said:

We are about to sort some much needed wills (the OH updating hers...mine afresh) with a trusted local solicitor we have both used before for stuff.
My OH owns the house, we are not married and I have no assets of note, apart from a good pension (50% better than hers) which falls outside of the will. I have older children who are at uni/live with their mum, she has none. I don't see a lot being in mine and probably marriage is the best protection all round....old romantic! It is more about the house and making sure I am not homeless. She wants me to remain in the house (if it went that way) and then to her named charities. Be interesting to see what the solicitor recommends. She is all over my EoW forms (if it went that way) but at the mercy of the Trustees at the moment and think we'd struggle to demonstrate she is financially dependant on me. Our arrangement for the past 2 years we have lived together has been me buying all the shopping and that's about it. She will give up work next year and I will contribute more then. I will gift money to my kids upon retirement in the next couple of years, with the message..."anything else is a bonus"
Possibly quite complicated but nothing compared to some peoples situations. We just want each other to be OK.

How much is her estate worth? If it is over £325k then you could be forced to sell to pay its IHT liability if you don’t have liquid assets to cover it. Getting married or becoming cilvil partners will avoid that happening.

It would be over that but not by too much, maybe £450k. It wouldn’t be an issue as I have a good wage and access to cash from my pension if needed. When I retire in a year or two I’ll have options around significant lump sums and a healthy pension. I think we’ve realised getting married solves many potential issues.

£50k in tax that can be easily avoided is pretty substancial in most people’s book. 

You old romantic.

Savvy_Sue

Even if you get married, wills are very necessary in a blended family. Anything you want your children to have needs to be left to them in your will, NOT just via a Letter of Wishes.

Otherwise you die first, everything goes to her, she can ignore your wishes and leave it all to the cat's home. Or she can remarry and not update her will, everything goes to new husband.

Yes, marriage or civil partnership resolves some issues, but have you sorted power of attorney, for health and welfare as well as finance? You could have major problems if either of you was incapacitated by sickness or injury while you're unmarried.

Also can you add your children as alternate beneficiaries to your pension should she predecease you? You might not think of it immediately if that happened.