Buying house with new partner and inheritance

lalahouseq · 2023-05-12T11:17:22+00:00

Wondering if anyone can help. I'm planning to buy a house with my new partner, both have adult kids from previous relationships. Plan is to own as tenants in common and get solicitors to write a doc stating that whichever of us survives longer can stay in the house until death or we choose to sell. Will obviously talk to solicitor but I'm wondering how this works from an inheritance tax perspective. If I die first, I don't want my partner to have to move. But if my kids have a 50% stake in the house, does this have any implications for them in terms of FTB status, tax relating to second homes, or anything like that? How would probate work to wind up the rest of the estate?

Betterbear · 12/05/2023 16:01

Why on earth would you choose a "new" partner to spend your inheritance on when you actually have your "own" children? How very selfish and not to mention foolish of you. Honestly stories like this make me despair. Please take a long hard look at what you are proposing to do? It is utter madness!

Tippexy · 12/05/2023 16:03

Wow! So say you die, your partner lives another XX years and your kids have to wait all that time for their inheritance? This is an awful plan, sorry.

makemineadoublee · 12/05/2023 16:09

I don’t see the problem 🤷‍♀️

but I’d speak to a solicitor to go through the different options available to you and your partner

you also need to consider implications around care fees etc if you outlive each other and how you’d protect your asset paying partners care fees if it came to it.

Stratocumulus · 12/05/2023 16:10

Be very careful.
You could die tomorrow, and then your new chap could live another 40 years before yr kids have their inheritance. Have u thought of that?

Setting tax etc aside, you will do well to take care of yr (adult?) children’s future before worrying too much about yr “Jonny come lately” chap. Also, don’t make a mirror will. Eg you die & leave yr estate to him. He remarried or dies and willed everything to his kids or subsequent wife.
Keep it in the family.
Love is blind.

Original poster

lalahouseq · 12/05/2023 16:14

Excuse me? I am not "spending my money on my new partner instead of my children". I am buying half a house for me to live in, with my partner, hopefully for the next 20+ years. This is an entirely normal legal agreement to ensure that whichever of us survives the other isn't forced to sell up the minute the other dies.

We are not marrying. All my assets will go to my kids, and all my partner's will go to theirs (except a possible token amount/certain belongings).
Owning the house as tenants in common with 50% each will ensure we have no claim on each others halves for any care home fees.

I merely wondered about how inheritance tax and probate is settled in the situation where the surviving partner remains living in the house. This could be me as easily as my partner.

OP posts:

Kissedbyfire1 · 12/05/2023 16:14

This - the effect of mirror wills in second marriages is often to disinherit one set of offspring. Ask me how I know…

Kissedbyfire1 · 12/05/2023 16:15

That was agreeing with @Stratocumulus

determinedtomakethiswork · 12/05/2023 16:16

Please be very very careful. My children's father died when he was 60. His wife will probably go on for another 20 or more years. Her own mother lived until she was 95 so maybe she will live that long herself.

I don't really think that my children should have to wait to inherit from their father.

Betterbear · 12/05/2023 16:18

lalahouseq · 12/05/2023 16:14

Excuse me? I am not "spending my money on my new partner instead of my children". I am buying half a house for me to live in, with my partner, hopefully for the next 20+ years. This is an entirely normal legal agreement to ensure that whichever of us survives the other isn't forced to sell up the minute the other dies.

We are not marrying. All my assets will go to my kids, and all my partner's will go to theirs (except a possible token amount/certain belongings).
Owning the house as tenants in common with 50% each will ensure we have no claim on each others halves for any care home fees.

I merely wondered about how inheritance tax and probate is settled in the situation where the surviving partner remains living in the house. This could be me as easily as my partner.

Why can't you buy a house in your name only? thus protecting your children's inheritance. Also why do you feel the need to provide your latest fella with a roof over his head? What has he been doing all his life that he now needs to live of you? He does not sound like much of a catch.

tailinthejam · 12/05/2023 16:19

Speak to a solicitor and they can draw up a trust document, that's what we are doing. It is complicated and I don't understand it, but basically what it means is that if either DH or I dies, our half of the property is held in trust to go directly to our dc when the other one of us dies. It means that none of it will get eaten up by care home fees, and that our estate goes to the right people.

Original poster

lalahouseq · 12/05/2023 16:22

Betterbear · 12/05/2023 16:18

Why can't you buy a house in your name only? thus protecting your children's inheritance. Also why do you feel the need to provide your latest fella with a roof over his head? What has he been doing all his life that he now needs to live of you? He does not sound like much of a catch.

Show quote history

Did you even read the post? We are buying it jointly. My partner is not living off me, we are financial equals. Neither of us want to live in a house we do not own.

OP posts:

Original poster

lalahouseq · 12/05/2023 16:26

tailinthejam · 12/05/2023 16:19

Speak to a solicitor and they can draw up a trust document, that's what we are doing. It is complicated and I don't understand it, but basically what it means is that if either DH or I dies, our half of the property is held in trust to go directly to our dc when the other one of us dies. It means that none of it will get eaten up by care home fees, and that our estate goes to the right people.

This is exactly what we are doing I was just wondering what the implications might be for my kids in terms of probate and later property ownership, before I speak to the solicitor.

OP posts:

OlderandwiserMaybe · 12/05/2023 16:28

Mums net is unbelievable sometimes!!

So people who are in a second relationship are not allowed to buy a house together because kids might miss some inheritance??!!

If anyone bothered to read @lalahouseq opening post you would realise both she and partner are equals in this no one is sponging off anyone Jeez. We have no idea how long OP has been with her partner - he's probably not "just some random guy" for heavens sake!!

Unfortunately I don't have an answer to your question @lalahouseq I came on to this post as i thought answers would be interesting as I may also be in your situation in a year or two's time. Honestly I'm horrified by the responses you've had so far! I wish you the very best of luck and hope you have many years of enjoying your new joint home with your partner!!

Shroedy · 12/05/2023 16:30

OlderandwiserMaybe · 12/05/2023 16:28

Mums net is unbelievable sometimes!!

So people who are in a second relationship are not allowed to buy a house together because kids might miss some inheritance??!!

If anyone bothered to read @lalahouseq opening post you would realise both she and partner are equals in this no one is sponging off anyone Jeez. We have no idea how long OP has been with her partner - he's probably not "just some random guy" for heavens sake!!

Unfortunately I don't have an answer to your question @lalahouseq I came on to this post as i thought answers would be interesting as I may also be in your situation in a year or two's time. Honestly I'm horrified by the responses you've had so far! I wish you the very best of luck and hope you have many years of enjoying your new joint home with your partner!!

This, absolutely. Jeez.

No answer to your question but they are questions the lawyer will be able to answer.

usernother · 12/05/2023 16:31

It's not your children's money. If they get any money eventually that's a bonus. Otherwise it's your money to use as you want to.

morelippy · 12/05/2023 16:35

@OlderandwiserMaybe completely agree!

Betterbear · 12/05/2023 16:41

I think the main problem is you openly admit he is a "new partner" and the funds are inherited which you intend to use. Morally this should be passed down the family line and not to fund a love nest. I take a dim view of people choosing new men over their children, grown or otherwise.

morelippy · 12/05/2023 16:49

OP I can only think some folk have lost the ability to read.

I too wish you many many years of happiness with your partner in your new home together.

MrsCarson · 12/05/2023 16:51

Be very careful with how the solicitors word the paperwork. My sister had all this drawn up for her and her partner then they split. He took half of her money that she had invested somehow leaving her with less than she had put into the house. The solicitors badly worded paperwork screwed her out of being able to buy another house.

Original poster

lalahouseq · 12/05/2023 16:51

Betterbear · 12/05/2023 16:41

I think the main problem is you openly admit he is a "new partner" and the funds are inherited which you intend to use. Morally this should be passed down the family line and not to fund a love nest. I take a dim view of people choosing new men over their children, grown or otherwise.

No, the main problem is people making assumptions far beyond what I have actually written. They are a new partner, in that they are not my kids parent. We are in an established relationship of several years. I also said nothing about having inherited the funds I am using.

OP posts:

PauliesWalnuts · 12/05/2023 16:52

I think the title of the thread is unintentionally misleading - I don't think she's buying the house with an inheritance, but rather concerned about her children's possible future inheritance.

Original poster

lalahouseq · 12/05/2023 16:53

PauliesWalnuts · 12/05/2023 16:52

I think the title of the thread is unintentionally misleading - I don't think she's buying the house with an inheritance, but rather concerned about her children's possible future inheritance.

Yes, sorry, I can see how that could be misinterpreted.

OP posts:

Chuffles · 12/05/2023 16:56

Jesus - she is buying with her partner as 'tenants in common'. She clearly intends that her share in the property will be held in trust and passed to her kids, not her partner or his family. This is entirely appropriate.

OP, this might help with your question of whether your kids would lose their status as FTBs if you were to die and your share is held in trust for them (looks like they would):

www.homesellingexpert.co.uk/guides/property-inheritance-and-first-time-buyer-status

lunar1 · 12/05/2023 16:56

I would make a very comprehensive list of questions for your solicitor.

The things you already mentioned about second homes. Plus, could your DC be liable for repairs and maintenance of the house.

Would he be allowed to move a new partner into the home, which is co-owned by your DC? Could he move his DC in?

How will they know their asset has adequate insurance? Do they need to pay for a policy themselves?

You need to know the weight of the burden you are placing on your children. One of you could outlive the other by decades, do you actually want your DC to be forced to wait that long?

On a more personal note, are you separated from your children's dad, or is any part of this money an inheritance from him? If it is, is there the money spare to leave this portion directly if you die first?

Cottagecheeseisnotcheese · 12/05/2023 16:57

my understanding is that both OP and her partner have some money each and they are buying a house together both putting 50% into the house purchase and both owning 50% of the house as tenants in common this means that OP's 50% is hers and OP's partners 50% is his, neither want to be in a postion that they have to sell up and downsize the minute one of them dies but rather they can continue to live in the joint home,
my married parents did this my Father has since died my mother is living in the house my DF's 50 % is in trust for myself and my sisters if my mother needs to go into care the house will be sold; my fathers 50% will be shared equally among us and my mothers 50% will then be used for care fees. it is relatively simple do do this, you can even include downsizing in it , generally however if the house is sold to buy with a new partner the deceased 50 % can't be used depends how you word the will