WWYD - Inheritance

[inheritancedilemma]

NC just in case.

I have 3 DC. Eldest has 2 DC, middle has 1 DC, youngest has no DC.

Currently DCs 2 & 3 are set to inherit 1/3 each and DC1's children 1/6 each. DC1 asked for this to happen so no hard feelings. DCs 2 & 3 were single and childless when this was decided so it wasn't discussed with them. My question is, now that DC2 has a child, what should I do? Options are to give them DC2's whole share (allowing for future siblings in this, but as it stands they get the same as DC3), giving them half DC2's share (meaning that all DGC are equal), or giving them nothing (meaning that cousins will have something and they won't). DC2 will just tell me to do what I want if I ask so no point doing that. WWYD?

Sorry, that should have read: their parents AND DSS's mother

you can actually word a will along the lines of" I leave £5,000 to each of my grandchildren and the rest to be divided between my 3 children"

This is the way to do it if you want to make your GC feel special but without causing drama

@UnbeatenMum

Your children can do a deed of variation to change your will after you die if they all agree (e.g. to split their share between their children. My Dad did this, it was fairly straightforward.

It depends why they've asked. If someone is on benefits then they can't do a deed of variation. Also if someone has strong reasons, like a gambling or drink addiction, it may be much safer to just bypass them completely.

It's quite simple to split a will as the OP has. Three equal shares - 2 & 3 having their share direct. 1's share going to their DC. 2 can be given the option if they want to do the same or not. If they don't want bypassed then nothing even needs to change in the OP's current will.

@blueluce85

I was school age when my grandad passed, and the fact he thought of me and named me in the will made me feel incredibly special.

Why don't you give a certain % equally to all grandchildren, so 10% for eg split between however many grandkids there end up being, then the remaining 90% split equally between your 3 DC.

It doesn't matter who the parent is, the grandkids are relatives in their own right

My DF gave al his grandchildren a set amount each in his will, the rest to be split between me and my siblings. As it happened, once his funeral was paid for, there wasn’t enough for the set amount so I just split what was left between the grandchildren. It wasn’t much, but they all appreciated it and bought something to remember him with it.

OP, I do think you should give your grandchildren an equal amount then split the rest between your children equally. You don't have to name the grandchildren, and can just say ‘and grandchildren who are born before my death’ or something similar to ensure they are all included without having to update your will if any more come along.

I probably will have to update my will in the future if I get married

Yes, because marriage invalidates a will, so you'd die intestate. Weirdly, divorce does not invalidate a will.

My will states the estate to be split equally between our children and if they predecease me their children. If no GC it goes to battersea dogs

@VanGoghsDog Weirdly, divorce does not invalidate a will

Erm, is that why a decree absolute states you need to rewrite your will, and you can write a will with the possibility of you getting married where it will remain valid after marriage.

@steff13

I'd give a third each to of your children, and let them dole it out to their children as they see fit.

This is the arrangement in my family too. Split equally between the two "children" (both now retired!) with the expectation that they'll share it as they see fit with now adult grandchildren (and presumably the one great grandchild, who's also now an adult).

Yes, the family member I'm thinking of is ancient

The 3 kids would get about 11% of the estate each and the adults can stay as they are.

Why on earth is this a problem and why are you overcomplicating your will?!

You just give 1/3 to each of your kids. The end.

The day after the will is read, DC1 can put every penny of their inheritance in the two bank accounts of their DC and there would be no difference at all. Same for your other children.

I just don't get why this is an issue.

Either leave to all your children equally or leave to all your grandchildren present at the time of your passing equally.

@steff13

I'd give a third each to of your children, and let them dole it out to their children as they see fit.

Exactly or as I have done 1/4 to each of 3 sons and the last quarter to be divided between the grandchildren and any further issue

Just split it evenly between your kids. They can then do what they like.

@Ideasplease322

Why did your child want their inheritance to go directly to the grandchildren?

The only time I have heard of this was in cases of pending bankruptcy.

The cleanest way is to leave to children, a theirs each, not skip generations.

It would be better for it to go straight to the grandchild, otherwise it runs the risk of being taxed again as part of their parent’s estate.

This is what my grandparents did - left everything (after IHT had been paid) to my sister and I - which means it isn’t being taxed again when our parents die.

Leave it equally to your children, how they share with their children is up to them otherwise all kinds of other considerations will confuse matters. That's what we've done, two children, 3 + 1 grandchildren,the one grandchild stands to inherit via her father too but we decided that wasn't a good reason to change things.

@ivykaty44

Have you worked out the tax implications? There’ll be possibly more to give to the tax man by omitting your children and giving to your grandchildren

What on earth are you talking about? This is bollocks.

I assume there is a valid reason why dc1 won't inherit directly
That is fine. It's fair to leave dc2 and 3 a third each to do with as they see fit. They have parents who can decide.
The only thing you need to make sure that Dc1 doesn't have more kids.

@keeprocking

Leave it equally to your children, how they share with their children is up to them otherwise all kinds of other considerations will confuse matters. That's what we've done, two children, 3 + 1 grandchildren,the one grandchild stands to inherit via her father too but we decided that wasn't a good reason to change things.

There's nothing confusing in splitting the estate into thirds. One each to DC 2 and 3 and DC1's third going to their two DC.

There's obviously a reason that it's been requested.

My Mum asked me about this when I had DC. Her will was written before any of us had children , there are 4 of us and only 2 of us have children at the moment but I was the first. She asked if I wanted them included in her will but I told her no as it wasn't fair if my siblings didn't have any children, so her will is split between us (her children) and it's then down to us to give any to the DGC

@ivykaty44

VanGoghsDog How do you know?

Well I'm a Chartered Tax Advisor and I concur with VanGogh'sDog.

I wish people wouldn't try to give tax advice when they know bugger all about it.

Leave it as it is, OP.

Your eldest prefers her portion go direct to her children, and good for her. It will presumably help them get on the housing ladder one day. (Hopefully many, many years in the future!)

Your younger two DD get an equal share and can choose what to do with it.

My parents have divided their estate as 50% to me (I have 3 DC) and 50% to my DB’s 2 daughters.

Their reasoning is that DB has paid off his mortgage and has a massive pension (financial services 🙄) so his future is secure. In addition he’s remarried and has DSC. What would have been his portion leapfrogs to his children, my DP’s grandchildren.

I’ve got bugger all pension (low paid with a career break) so I could use my inheritance as a pension were it needed, and otherwise divide it up between my children.

We’re all happy that this is fair.

@Idontgiveagriffindamn

Split equally between your children no matter how many children they have. One of your children has asked that you bypass them and give to their children which is fair enough. Unless expressly asked by your other child then I don’t think you should do it. I’d also write into the will that you have discussed it will your child and they wish for their inheritance to go to their children.

Agree with this. Don't bypass a child without their say so but if you do they get their parents share.

The only time I think differently is if all were getting money eg children getting X amount the same as each other then grandchildren getting Y amount the same as each other.

My parents have 3 DCs. There are various GDCs between us. They've spilt 1/4 to each DC. With the remaining 1/4 split equally between the GDC. Seems quite sensible to me.

Bear in mind that if you include all grandchildren, the more children your DC 1&2 have, the less money there will be for DC3 if they stay childfree.

@Notadramallama

Bear in mind that if you include all grandchildren, the more children your DC 1&2 have, the less money there will be for DC3 if they stay childfree.

That's not true in the way the OP has her will set up.

The three of her DC have an equal share. The two GC currently in the will have half of their parents share each. DC2's child/ren would have their parents share as well. Rather than an equal share to DC3.