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?

I don’t understand then. If you aren’t worried about divorce, and also are fine about leaving it to your husband and then them inheriting it from him if you die first, what are you worried about?

while you are alive how would they have any claim on it? Why would they have any claim on any of your money?

or are they still young and you’re wondering if it can be considered for CMS calculations? Again though if it’s not part of you’re Dh’s income that is not relevant either.

so what exactly do you mean by having a claim on it in the future?

In Scotland inheritance has to be declared for a divorce but a partner is generally not entitled to half of pre-marital assets or an inheritance provided they are kept separate and in the name of the person owning them
"
In Scotland, inheritances are generally not counted as matrimonial property and are typically excluded from division during a divorce. Under the Family Law (Scotland) Act 1985, matrimonial property is defined as assets acquired by the couple during the marriage, explicitly excluding gifts or inheritances received from third parties. "

however if it is mingled ie you use the money for renovations or to pay off part of a mortgage or put iit in a joint account then it maybe considered marital property
if you use the money to buy a rental property the rent will be considered income acquired during the marriage so that will be marital property though the property itself is not
the inheritance maybe considered in a divorce as part of the assets to enable fairness financially but this is much less common than in England

As long as you keep the money in a separate account in your name and don’t merge it with your husband it can remain yours alone and won’t be considered to be funds of the marriage. If you were to divorce it would not go into the pot. This is the law in Scotland.

To ensure the money remains in your immediate family on your death you would need to detail your wishes in a will. Naming your children over your husband for this particular amount. Again as long as your husband has not had previous access to this money it is possible.

My concern was whether the money would be considered marital money because if it was they have a legal entitlement if DH dies. If the money is not considered marital and is purely mine then they have no entitlement.

They are not young, they are adults.

Thank you, that’s really helpful. I’m not at all bothered about it if I die first.

I’m in England OP but have a look at gift trusts. My
mu
has put money in these trusts for me and my brother. She has full control and can choose to withdraw money but as the beneficiaries me and my sibling get paid the money automatically when the time comes. It also stays
out of her estate along with the gains.

Ok so I think I see.

so if dh dies first in Scottish law he can’t disinherit his kids. So your question is what is considered his estate when it comes to their inheritance.

i would think it’s movable assets in his name only. So you should be fine.

Thank you

Thank you, o just wanted to know if the money was ‘ours’ rather then mine, but it seems like it’s mine and will be quite safe for my future if the worst happened.

just don't put the money into a joint account and don't give DH a card for the account,
just make sure it is tracked as the inheritance when in investments etc all of course solely in your name
if you want to purchase a cruise for the two of you or you and the children just transfer the money to your joint account first and pay for cruise from there,

another quote

"In summary, for legal rights calculations in Scotland, 50% of a joint account with a spouse is considered a moveable asset of the deceased's estate. "

I have a similar situation, the inheritance money is in accounts in my sole name and my will stipulates the money in sole accounts is to go to my DC. Money in joint accounts for my DH (DC are not his).

Just keep the money in your own (not shared) account. While you are alive and even if your DH dies his step kids have no rights to your money. As others have said, the only person who could claim a right to some of it while you are alive is your DH if you divorced.

Would you put it in a pension?

Decline the inheritance in favour of your children?

What puzzles me is why op does not mind if her dh gets everything when she dies. Surely it should go only to her own dc.

You are asking the wrong question. It's not about step children, it's about marriage. If you inherit, does your spouse have a right to the money. That's what you want to know. In England the answer is no. I don't know about Scotland.

I'll happily "mind" it for you.

Some of it for sure

I don’t want to

You don’t really need to be puzzled over it. It’s nothing to you. Of course I want my DH to have everything if I die, obviously my DC will get their legal entitlement, but why would I want to cut my own DH out? Surely that would be more puzzling than me not caring if his DC end up with a share when I’m dead?

Yes, essentially that’s what I wanted to know. Not because I don’t want my DH to have any though, just his DC.

This is correct.

If DH dies but the money is in a bank account in your sole name then that is your money and no one can touch it in these circumstances. It’s important that the money stays in your own bank/savings account and not a joint account otherwise it could be at risk.

You need proper legal advice.

Spend it!