How do I protect an inheritance?

[vickyfowler]

We are in Scotland

I am potentially going to inherit a property that I have zero interest in keeping so it will be marketed as soon as possible. DH has 2 (adult) children who I absolutely do not want to benefit from the proceeds of this property. We also have adult DC together. If there any way to ensure his DC have no claim on the money in the future?

Isn’t this what wills are for?

In Scotland your DC have a legal entitlement so you can’t just exclude them, so no, not really.

Keep the proceeds in a bank or savings account in your name. Dont let anyone have access to your account including your DH, so you keep control of it. If I understand it, in Scotland offspring have an automatic right to parents' assets but not property. However, they are not your children, so that doesn't apply, but keeping the proceeds in your name protects it from any claims they think they might have, because you are not their parent and it's your inheritance. Whether you share the funds with your DH and your shared DC is your choice of course.

caveat: I don't advocate for treating children and step children differently. It's very painful for step children to feel excluded, so what I've said is how I understand the law in Scotland to be.

Yes definitely, that's a great way of protecting the asset and ensuring it goes to whomever the OP wants.

But you've said they aren't your children...

If it's yours then you just sell it. Then keep the money and write in your will that if any of it is left you want it to go to the cats home/your bio kids/the Gary Barlow appreciation society etc. Or put the money in a trust for your kids to access on your death.

If you do leave it to DH then he may choose to leave it to his kids. Which would be up to him once it's his.

This is what lawyers are for surely?

OP - ask @mnhqto move this to legal
or scotsnet to get better advice.

mine is to see a solicitor

you might be able to keep it from DH’s adult children as long as he dies first.

but if you go first then the portion of your estate that goes to him will then in turn be split amongst all of his children

Depending on the amount involved, and if it would work legally in Scotland, I think I'd buy a property and put it in the joint names (joint tenancy) of myself and my adult kids.

Not sure about Scotland, but generally speaking that means that when you die the property passes automatically to the survivors outside the terms of any will.

Give the money to your own adult children now. Or buy gold.

You could also gift the money to your children now and hope you live for longer than 7 years to avoid IHT.

In Scotland legal rights only apply to your children and it’s only moveable assets. They will have no claim on it.

I would sell the property and immediately give the money to my own adult children.

Possibly I would spend some of it on a nice holiday/car/kitchen if that made sense, but the bulk would go to DC.

That’s my question really. Does it being in my bank mean it’s not money if the marriage or whatever?

Wills don’t allow you to exclude children in Scotland so I’m trying to establish if the money would be considered both DHs and mine

Yes, I’m not sure if my money becomes DHs money, in law

Sell it and give the money to your DC now. Also saves on IHT if you live into later age.

Quite, but nothing wrong with asking a few questions before it comes to that. Or do you think people should never discuss things prior to actioning them?

Are trust wills not a thing over the border? Genuine question.

I’d put it in an account type of my choosing and account for it in my (trust) will. We have no SC involved but we wanted to protect the DC’s inheritance in case anything happens and the other parent remarries.

Yes I will do thank you

Thanks but I don’t want to have a second property

I don’t want to give it to my adult children, it would be mine.

I wouldn’t want to give it away, I want to have it.

That’s what I wasn’t sure about due to being married if the money is considered also DHs?

I don’t want to. I would want to have the money for me. Sure they would get something and obviously I would not go wasting the rest so they stand to inherit eventually but I would be in no rush to hand it over.