IPDI will on first death

ahfat41

Adding beneficiaries as trustees on title deeds with an IPDI (Immediate Post-Death Interest) will has both pros and cons. What are the pros and cons? Am going to see a solicitor after new year to discuss. They are both property owners. I was thinking of transferring the title to myself and them!Is it advisable. Do I need to update my will now am the sole owner on house deed? Thanks

Keep_pedalling

Who is the ‘them’ and what is your relationship with them? What sort of values are we talking about?

ahfat41

Them are the two adult children. They are both executors and beneficiaries. Am having conflicting advice, need to be prepared before appt with solicitor.

Keep_pedalling

Assuming you are not married or in a civil partnership then an IPDI trust is pointless just leave your estate to them outright. Don’d make them joint owners now it does not reduce IHT and is likely to lumber them with a CGT liability in the future, it also reduces your long term security in that your house could end up as an asset that is hit in the event of divorce, death or bankruptcy of your children.

If on the other hand you have a partner you want to give a life interest to, then a IPDI trust may be appropriate, but this can lead to IHT issues if you are not married or in a civil partnership.

ahfat41

Am recently widowed. Cannot downside or sell on my own so my best option is to add their names as trustees to their dad 50% share. Will need to update my mirror Ipdi will as my share will now pass directly to the adult children.

RAS

I can't check but I think ahfat41 is the surfing spouse and beneficiary of an IPDI.

Not that this negates the problems if they make their children joint owners.

Keep_pedalling

ahfat41 said:

Am recently widowed. Cannot downside or sell on my own so my best option is to add their names as trustees to their dad 50% share. Will need to update my mirror Ipdi will as my share will now pass directly to the adult children.

Sorry for your loss. Are you saying that both wills were written to create an IPDI trust on the first death?

If that is the case, and you held the house as tenants in common, then the trust is now the legal owner of his share of the house, but you are the beneficial owner of both shares. You can have this registered with the land registry but it does not matter if you don’t at this stage. What will need to be done within two years of his death is for the trust to be registered with HMRC. 

As for your will you do not need to amend it to remove the IPDI trust clause as this automatically becomes redundant on your husbands death. 

poseidon1

ahfat41 said:

Adding beneficiaries as trustees on title deeds with an IPDI (Immediate Post-Death Interest) will has both pros and cons. What are the pros and cons? Am going to see a solicitor after new year to discuss. They are both property owners. I was thinking of transferring the title to myself and them!Is it advisable. Do I need to update my will now am the sole owner on house deed? Thanks

You have a number of related  ( and somewhat confusing) posts on this subject over the course of this year. I believe I made  definitive reccomendations as to appropriate course of action related to formal recognition of the trust in the threads below - 

https://forums.moneysavingexpert.com/discussion/6588788/is-this-good-advice-from-local-company-dealing-with-probate#latest

https://forums.moneysavingexpert.com/discussion/6593425/first-time-buyer-status#latest

What is now confusing is that since the post in March despite registering the trust with HMRC in June 2025,  you have sold the original home and downsized/ replaced it with another residence. It appears you sold as sole owner, received the monies in that capacity and from what you now say bought the replacement home as sole owner and presumably personally retained any surplus cash.

It seems to me you have already ignored the requirements of your husband's IPDI trust and begs the question whether you really want to be subject to its restrictions. You are still within 2 years of your husband's death so your children can vary his will to give you outright ownership freed and discharged from the trust.

You can then change your current will to give your children your estate inclusive of the solely owned  property which would be a much simpler straightforward arrangement for all concerned. You might also want to put an LPA in place in favour of the children.

If you do decide to terminate the trust don't forget to inform HMRC so that they can remove it from their register.

May I add the manner in which you have been throwing out random questions on the forums without linking up  past posts and updating on your actions thus far, misdirects those who respond without reference to your past posts. You cannot assume they have all the pieces of  the puzzle you present them with.

RAS

It also means that if you ever need care, the whole of the property value can be used to pay for care.

The IPDI protected half the value of the old house for the benefit of your children after your death. 

If you've done at poseidon1 indicates, they could get nothing.

Keep_pedalling

RAS said:

It also means that if you ever need care, the whole of the property value can be used to pay for care.

The IPDI protected half the value of the old house for the benefit of your children after your death. 

If you've done at poseidon1 indicates, they could get nothing.

In her children’s position, I would rather my mother got the best care she could get for as long as she could get it and would rather risk getting nothing that risk the self funding money runs out. 

Time for a family discussion I think. 

poseidon1

Keep_pedalling said:

RAS said:

It also means that if you ever need care, the whole of the property value can be used to pay for care.

The IPDI protected half the value of the old house for the benefit of your children after your death. 

If you've done at poseidon1 indicates, they could get nothing.

In her children’s position, I would rather my mother got the best care she could get for as long as she could get it and would rather risk getting nothing that risk the self funding money runs out. 

Time for a family discussion I think. 

I agree, the IPDI trust appears to have already been compromised in any event.