Will & Trust

Chezza333

I am married with 2 grown up children who have left home, my partner has 3 children from a previous relationship. How do we ensure our house is left to our shared children only as I came into the relationship with the house (not the current one we reside in). We both have a will but should we get a Trust? If yes, which one as there are so many variables I am totally confused as I don't want to incur extra costs for me or my children than needed or for their to be any issues after we pass. We are just ordinary working class so don't have loads of money or savings. My mind is blown.  Any suggestions would be greatly appreciated   

poseidon1

Your post is unclear as to what you want to achieve.

 Are you saying you want all five children of the relationship to benefit from your joint estate despite the fact you were the only one who came to the relationship with a house?

Does that mean there was a significant disparity in the relative wealth between you and your husband prior to the marriage, but you are more than happy for his children to benefit from that  wealth equally with your own children?

An IPDI trust is likely to be a possible solution here, but you really need to clarify your joint aims and objectives as regards benefits in favour of the  children  on each side and  safeguards for the surviving spouse following your respective deaths, to determine what the trust drafting might look like. 

Chezza333

Thank you apologies, no I am saying I only want my children (joint) children to benefit from the house.

poseidon1

Chezza333 said:

Thank you apologies, no I am saying I only want my children (joint) children to benefit from the house.

So your grown up children are also offspring of your husband.

If you want to ensure the house is safeguarded for your children of the marriage in the event you predeceased your husband, your will has to establish an IPDI trust. This states your husband has the right to live in the house for life and if needed, benefit from any income generated from house proceeds if he has to go into care.

On death the house or the invested proceeds then revert to your children outright.

Please note this kind of will needs to be drafted by a STEP qualified solicitor, the trustee /executors should be your own children ( to save on professional fees) so they should be willing and able to take on that obligation which at the very least will involve communications with HMRC, as well as handling probate of your estate.

Couple of  other things you also did not clarify.  Is the current home  solely owned by you or in joint names with husband ? If in joint names this complicates the trust arrangement if on paper you have already effectively gifted a share of the replacement home to your husband.

Also you say the two of you already have wills, what are the provisions of those exsisting wills?

Chezza333

Thank you, our current home is in both our names as I wasn't allowed to purchase a home in my name only as I am married.  Both our wills state that upon our death, the other can reside in the house for the remainder of their life, it then goes to both our children from our marriage.  

poseidon1

Chezza333 said:

Thank you, our current home is in both our names as I wasn't allowed to purchase a home in my name only as I am married.  Both our wills state that upon our death, the other can reside in the house for the remainder of their life, it then goes to both our children from our marriage.  

Seems only half (?)  the house goes into trust for life ( assume you hold as tenants in common). Other half would be retained in personal ownership of the surviving spouse. 

In this scenario, you have only preserved your half in trust for the joint children if you predecease your husband. Nothing stops him changing his will after your death to benefit his three children from the previous relationship.

Incidentally there was nothing preventing you buying the replacement home in your own name despite being married, unless there is a joint mortgage involved with husband.