Inheritance - what to do with mine?

[BotDranning]

So - Im posting very deliberately here - but please be gentle.

These are 2 am thinkings......

I am about to change my will as buying with DP.

We will own our new home 50:50.

I have 2 DS - Both of whom are doing ok.

DS1 Is just completing a Degree Apprenticeship London - minimum minimum wage. He will get a 1st in a BA. He has worked so exceptionally hard and has been offered a full time position with the company that has paid for his apprenticeship. It feels that he is probably set up for life - has a lot of opportunities to use his degree world wide (same industry as me so I'm confident in his opportunity). He will have no student debt. I currently give him £200 a month and will continue to do so for next few years.

DS2 is about to go to university - STEM, but can not get an apprenticeship in the area he wants to work. Has worked exceptionally hard to get to this stage (not through the formal routes) and I fully support his choices. He will have a full student loan - but minimal support loan - I will be giving him £300 a month once he starts uni in September.

So my question. when I die my estate will go to the boys. This includes 50% of a substantial house and my life insurance and pension. Currently this equates to around 700k. (350k in property and the rest in pension and life insurance).

So my question and it only occurred to me last night very late whilst I couldn't sleep..... would it be fair or reasonable to write into my will that everything is shared financially 50:50 once my youngest student loan has been paid off?

I can't decide if this is fair or not.

YABU = 50:50 split no consideration of student loan
YANBU = give the advantage of paying off the loan.

Edited as I think I mis-read, you'd like to specify that the loan is paid off with the inheritance.. Not fair I think, it would be your son's choice what to use the money for IMO, as it is his choice to get a student loan.

Considering I am in my late 30s I only know one person who has paid theirs off, and that's because they are a solicitor so earn a lot higher than the average, you are being very unreasonable.

Most people I know gain more in interest annually than they pay off.

Give your children 50:50, your will is your last gift to them, the last 'message' they get from you, treat them equally.

OP, you say that you're buying a house with your DP, and yet everything in your Will is going to your children? Do you really expect your DP to have to sell the property if you die first, in order to pay your kids what they're due, or have you made any plans for him/her to continue to live in the property and be protected until his/her death? It just sounds to me, like you haven't thought this through properly yet?

Who pays off student loans? Virtually no-one.

Split it 50:50.

Half, you never know what is coming for either of them.

No my life insurance and pension will go to them. My DPs life insurance and pension will go his kids. There will be a stipulation that either surviving partner will stay in house on event of death. My partners estate is hugely significant. We have a wealth advisor and trusted legal councle to ensure both our estates are protected. We are very fortunate.

50:50. You don’t know what the future holds and both dcs made their career choices knowing about student loan debt and how much help you could give them.

I wouldn't worry too much. This sounds like those worries of the small hours. It all sounds as if you gave been very sensible. Just split it 50/50 and stop worrying about it.

If you don't just split it 50:50 you will need to constantly rewrite your will to keep things "equal". What if one child buys a house and the other wants to travel? One has children and the other an expensive divorce? One has health issues and can't work full-time? One wants to retire early?

Goodness - one wonders what anyone will ever inherit after next budget! Give to them asap and hope there is no tax involved.

In the US it would be possible to get a life insurance policy on both of you that could cover a payout to either his children or yours in the event of either death. You could pay this from joint household funds. That means that your or your DP can keep the house.

This 100%.

Are you aware that some people never pay off their student loans, because they do not earn enough, or they change career or due to ill health or emigration or a combination of all these things.
I know several people who have not paid off there student loan & never will.

Why would you give money in your will with strings attached ?

Give equally to your children

You could possibly make provision for grand children if there are some in the future too

50:50 I’m shocked you’d consider anything else.

It was your son’s choice to go to uni and take out loans just as it was your other son’s choice to do an apprenticeship. Do not punish one for their choices.

I completely agree with this. You have no idea what life has in store. One may have a dc with complex needs. One may end up disabled and unable to work. One may have a costly divorce.

DS2 is about to go to university - STEM, but can not get an apprenticeship in the area he wants to work. Has worked exceptionally hard to get to this stage (not through the formal routes)
Out of interest, what not formal route did DS2 take?

50:50, not sure what the student loan bit is about.

If I’m understanding your post correctly, you’re considering the university fees would be paid out first, then the balance (cash component) of your estate would be 50:50 to your sons.
i think this is incredibly thoughtful & considerate. There isn’t a university debt hanging over one son and they each end up with the same cash inheritance.
i would do exactly this.

50:50

Do you really want to create a divide on your demise?

Yes this is my 2 am thought - without much thought. I love my boys so much snd want to treat them fairly.

I'd stick with 50/50. What if one chose to do another degree or other qualification later on? You'd be endlessly updating your will to account for the extra debt.

50/50 you simply have no idea how their lives will turn out.

Ah. Ok so each would have no undergrad degree debt. Actually, yes that makes sense. But tell them before they hear it in a will.

Will your sons inherited a substantial amount of money on your death ? Or will they have to wait for possibly decades until your DPs death to get your Half of the house?