Do we need a Will ?

jainraghav74
jainraghav74 Posts: 17 Forumite
in Deaths, funerals & probate
Perhaps this question might win the most "Meh" question award at MSE, but here it goes:

Do we need a Will under the situation below:

- House + Car + Cash + ISA Value less than £ 200k
- House ownership jointly as tenants in common
- Both husband and wife in 33-35 year age
- Two children, both below 5 years of age
- No life insurance cover or critical illness cover
- Death in service benefit to husband from current employer
- No pension account for wife
- Husband has 9 qualifying years for purpose of state pension, workplace pension £21k

Intention is:
- If either husband or wife dies, then everything goes to the other surviving partner.
- When both dies, then everything goes to the children divided equally
- Do not want value to estate to pay for other partner's care cost (in old age).

Not sure
- How will things be handled if the couple were to die before eldest child is 18 yrs old?
- Will there be any IHT (per current rules) to pay due to such a small value of estate?
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Comments

  • p00hsticks
    p00hsticks Posts: 12,784 Forumite
    First Post Name Dropper Photogenic First Anniversary
    Yes you do, if only to specify who you want to be guardian to your children if you both die before they reach 18, and to ensure that if necessary there is money available to them to raise them.
  • Mojisola
    Mojisola Posts: 35,557 Forumite
    Name Dropper First Post First Anniversary
    If you want the survivor to inherit everything, why are you tenants in common rather than joint tenants?
  • Tom99
    Tom99 Posts: 5,371 Forumite
    First Post First Anniversary
    jainraghav74 wrote: »
    Perhaps this question might win the most "Meh" question award at MSE, but here it goes:

    Do we need a Will under the situation below:

    - House + Car + Cash + ISA Value less than £ 200k
    - House ownership jointly as tenants in common
    - Both husband and wife in 33-35 year age
    - Two children, both below 5 years of age
    - No life insurance cover or critical illness cover
    - Death in service benefit to husband from current employer
    - No pension account for wife
    - Husband has 9 qualifying years for purpose of state pension, workplace pension £21k

    Intention is:
    - If either husband or wife dies, then everything goes to the other surviving partner.
    - When both dies, then everything goes to the children divided equally
    - Do not want value to estate to pay for other partner's care cost (in old age).

    Not sure
    - How will things be handled if the couple were to die before eldest child is 18 yrs old?
    - Will there be any IHT (per current rules) to pay due to such a small value of estate?
    In which case the 1st to go does not leave house absolutely but leaves the survivor a life interest after which house goes to children.
    That type of will needs careful wording so you would need a solicitor.
    Given your age and total assets however it would be odd to make your main criteria avoiding care home fees which even if they do happen hopefully will not be for 40/50 yrs.
    Also the survivor, with two young children to bring up really needs as much cash/flexibility as possible so I would have thought holding the house as joint tenants and a will leaving everything to each other would be the way most people would go.
  • Robin9
    Robin9 Posts: 12,091 Forumite
    First Post First Anniversary Name Dropper
    p00hsticks wrote: »
    Yes you do, if only to specify who you want to be guardian to your children if you both die before they reach 18, and to ensure that if necessary there is money available to them to raise them.


    I agree - your priority here must be the children. You need to give careful thought to the what happens if you both die - together or at different times - there's a big difference between taking on / adopting 5 yo's and teenagers.
    Never pay on an estimated bill
  • getmore4less
    getmore4less Posts: 46,882 Forumite
    Name Dropper First Anniversary First Post I've helped Parliament
    Do we need a Will ?

    Do not want value to estate to pay for other partner's care cost (in old age).

    That needs a will.
  • martinthebandit
    martinthebandit Posts: 4,422 Forumite
    First Anniversary First Post
    So who do you think should pay for your care costs when your old?

    .....and if it's the state are you happy to pay more tax to pay for other people's care costs?


    Just wondering.......
  • DigForVictory
    DigForVictory Posts: 11,905 Forumite
    Name Dropper First Anniversary Photogenic First Post
    Dear Heavens, Yes.

    For the children as a bare minimum - have you read any of the care home horror stories? Possibly largely fiction but there are just enough court appearances for me to want to be sure my cherished cherubs (now hulking great teenage louts) are swept into the arms of those whom I have picked to love & care for them.

    As for playing tiptoes with care home fees, feel free to try but observe that Trusts are not Free & anyway the legislation may change before it's relevant. Burying half a kilo of a rare metal might be a more successful hedge against that but just sourcing it will leave a wiggle on the charts for ages.
  • harshitguptaiitr
    harshitguptaiitr Posts: 171 Forumite
    I've helped Parliament
    House + Car + Cash + ISA Value less than £ 200k
    Is this after mortgage paid off?
    Two children, both below 5 years of age
    Who will take care of them if unfortunately both of you were to die within a short span of each other?
    No life insurance cover or critical illness cover
    Even if one partner is not working that partner is saving the family money in childcare costs.
    Death in service benefit to husband from current employer
    I see your usage of the word current, which indicates you are aware that in case you switched employer, you may or may not have similar death in service benefit. Also Life insurance premium cost will go up with your age.
    Do not want value to estate to pay for other partner's care cost (in old age)
    This is only possible with a Will in place, which is not DIY.
  • xylophone
    xylophone Posts: 44,345 Forumite
    Name Dropper First Anniversary First Post
    Yes, you need a will. You need to appoint guardians for your children in the event that you both die before they reach their majority.

    If you are tenants-in-common, the house does not pass automatically to your co-owner as it would were you beneficial joint tenants.

    Do you have a mortgage? If so, why not life insurance for both of you to at least cover the repayment of the mortgage?

    If no mortgage, why no life insurance to cover the costs of bringing up the children if you aren't around?
  • Dox
    Dox Posts: 3,116 Forumite
    First Anniversary Name Dropper First Post
    jainraghav74 wrote: »
    Perhaps this question might win the most "Meh" question award at MSE,

    It most certainly does!
This discussion has been closed.
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