To ask how you would sort out this inheritance/will Situation?

[Willsnbills]

I am a divorced with 2DC and I have approximately 100 K that I plan on putting into a house with my partner. He has the same amount and mortgage would be for 350k.

how would you work out inheritance? I I was to remarry that is.
upon my death I would have 2 insurance payouts. One of 300k and one that would be 450k. I want to ensure my dc have enough and that my partner would be able to stay in his house (and pay off mortgage) what would be the best way to do it? What would you do? Thank you.

How about one insurance for 300k to partner to pay off house.
Other insurance for 450k in trust for your 2 DC.

You need to draw up a trust fund with a lawyer.

Out if interest those policies- I take it if you die of natural causes they don’t pay out? Seems premature to assume you are going to die an early death

I’m not entirely sure. I know that the latter one paid by my workplace is paid out on my death regardless. The other is my own life insurance policy and I’m medically underwritten for life.

this is what I was veering towards, it’s what made most sense to me. But I just wanted others opinions. Thank you.

What happens to house?

Well I would want my partner to remain in the house for the remainder and death on his death a portion of that to go to my dc possibly? He had no dc.

Please each see a solicitor before you take any other steps and remember that unless you have mutual wills, the surviving partner can do what they want with anything they inherit from the deceased partner

@Willsnbills maybe need to sort something about the house as if left all to partner they don’t have to leave anything to your DC

You use the proceeds of one policy to pay the balance of the mortgage and any remaining money, together with the proceeds of the other policy go in trust to your children. Your half of the house goes to your children with lifetime use to your partner. You need to think about things like who pays for maintenance etc. Also, who will be looking after the children? What happens if they wish to remain in the house.? You really need to speak to a specialist about these kinds of issues, as there may be tax implications for your partner with lifetime use.

It is a good idea to review your will/legacies every few years to ensure they meet the needs of your children and partner.

If you died next year, your provision would be different to that required if you died in early retirement say.

If you are both of working age and earning well, why not simply leave him an amount sufficient to pay off your half of the mortgage (£175,000) leaving him with a mortgage he can manage on his own. He will already have the £100k as your deposit on the house. TOTAL £275K As you get older and perhaps his earnings decrease or ill health impacts him, then amend the provision accordingly to give him more from your policy.

Your children's needs for support are greater when they are younger and perhaps looking at uni and getting set up in a career. So don't look at this as something to be set in stone now for ever and a day but revisit it regularly to ensure it meets the needs of your OP/DH and your kids as their needs change over the years.

Read the small print of the insurance policies. There were so many rules when my FIL passed. They didn't pay out.
My own fathers wasn't a whole life policy and ended when he was 65!

I’m assuming upon my death they would go to live with their father. We have 50:50 custody. I will of course speak to a specialist, I just wanted others opinions on what would be the right/fairest thing to do. Thank you

I will need to read it yes. But regardless right now I know it is in effect and I will extend it as needed. The company insure up until age 91 I know that much.

Buy the house tenants in common. Each of you owns 50%.

you leave your 50% to your kids, with a life interest for DP so it can only be sold if he wants to or he dies.

pensions I think you can choose a beneficiary, although pension companies can override if for example you would be leaving a spouse with no income. If your Dp has his own income and wouldn’t need your pension, leave it to your kids. They can pay off your half of the mortgage.

some of it will depend on the ages of your children and whether they are adults, or they will need the money for their guardian.

would your dp be guardian if you died? Their dad or another relative?

probably worth speaking to an estate planner.

Thank you @HomeTheatreSystem this is a good way to view it. The way I see it right now is if I die then they would get a good chunk into trust and they would be under the full care of their father. University costs are already sorted and in an account under their names. They would still have a home at their dads. I’m really just trying to figure what is fair…I know it seems they should get half of everything but out of one policy alone they will have over 200k each. I just wanted others opinions everyone to have what they need and my partner to be able to stay in his home should he wish to. Obviously I would like them to have a portion of the house too but I don’t whim to feel under pressure to move as such.

Their dad would be their sole guardian and he has a home and a solid wage. Any money that goes to them I would like to be theirs

Buy the new house as tenants in common, each holding 50%.

Write a will, leaving house to kids with partner having 'a lifelong interest' so he can live there until he dies, then kids get your half and whoever he leaves his half to gets his half.

Leave yoyr insurance policies or anything else to whoever.

Thanks all. Obviously I will take legal advice and a will be drawn up. I just want to make sure that everyone is covered and everyone has something. It seems like a lot of money to me. I’m worth more dead to be honest.😂😅 I just don’t want to situation where my children are left with little or nothing or a situation where my partner is under pressure to sell, etc. I just want it to be fair. Thank you

Imagine for one minute that within a few months after your death in the next few years say, which paid off the mortgage via your policies, your DP remarries and leaves the entirety of his £550,000 house (today's value) to his new wife who in turn leaves it to her relations. ~£450k of that would have come from you. Solicitors will have seen all sorts of scenarios play out and can best advise you as to the provision you should make to avoid pitfalls. It does sound as though your children are well catered for in terms of their care and future financial needs but if they've lost their mum as young adults they will need a lot of support.

Of course you do not want to have your OP be widowed and forced to sell his home because he can't afford to stay there but you can organise your will and bequests to keep the roof over his head but your share of the house to go to your children once he remarries/starts to cohabit or dies. See a lawyer! Ask lots of "what if" questions:)

Ok so I split the policies and the house is his to live in but with my half upon selling or his death to be given to my dc. That’s pretty much it 😅

You could also have it so that if he remarries/ cohabits then the house has to be sold / your kids given their half

you don’t want it where potentially another women / family has a claim on your current DH half of the house and makes it difficult to sell

so I would say life interest till he either sells remarries or cohabits

and let people you know DC father / your family have copies of the will and know where the original one is kept along with copies of insurance / pensions

I need one of those policies - that pay out in your death regardless of the cause!

Does anyone know what they are called?

the insurance that pays out regardless (apart from suicide of course) is my workplace payout. The other is one I took out myself. It is for critical illness etc.

I thought the mortgage has its own life insurance to pay out?

My brothers paid out the sum assured despite the fact that he and his wife had paid off half the mortgage before she died, so all previous payments refunded.

Life insurance policies aren't written "for life" because that would mean every policy always paid out, making the business model unviable. They are usually written for 25 years or less and if you haven't died by then, they lapse.

Likewise work policies will only pay out (a) while you remain employed and (b) below a certain age (often 60). So your planning will need to account for what happens if - as is likely - you die of old age after both policies have lapsed. Of course, your mortgage may be paid off by then.

I am in a similar situation though no partner, and have arranged things so that one or more of my life policies will enable my children to pay off the mortgage if I die young. If I get to retirement age and haven't died yet (hopefully!) I will revisit the planning then.