What to do with house-inheritance?

[Inheritancequery1]

I’m buying a house with my DP. I have dc from a previous relationship. On my death they will receive practically 800k in insurance policies and death in service. So this leaves the question…do I buy the house as joint tenants or tenants in common? I’m so torn 😅 help

You seem to have a potentially large estate if you DH has similar assets. You probably need some professional advice. Trust can be utilised depending on how the title is held so that's a factor to consider. Are you leaving the house to eachother on first death? If not then you have to split the title.

My death in service is x10 salary and I have a life assurance policy that is 300k. As it stands it goes in trust to them.
I don’t want to leave my DP homeless in the case of my death.

We’re not married so I don’t know what is best tax wise etc? I suppose the solicitor can advise

Surely most people have similar death in service. They're normally held in trust by employers on before of the beneficiary so wouldn't form part of your estate.

Why would you assume you would die working g age? Can't think I've ever given it much thought. If I do theyll have a huge cash sum from in insurance so tax would be an irrelevance.

You’re not married so own it as TIC in direct proportion to what each of you contribute. You can place your share in trust allowing him to remain there until either he cohabits with a new partner, or dies himself.

If I don’t die while of working age then that money is not there and they get 300k which to be fair if I’m retired will mean they are in their 20’s and they are raised so 150k each is ample I suppose.

And if we marry eventually then this is null n void I presume?

I am just a bit uneasy doing this for some reason, if I die of working age they get a hell of a lot of money in trust. Their dh is in their life so it would be him and another trustee. AND then my DP would have to live with the fact that they technically own half his home too? I just don’t know 😩

You surely can't have an insurance policy that pays out if you die of old age? Apoligies if I am confused.

I want everyone to be looked after equally

its a life assurance policy so it pays out on death regardless

Sorry, I glossed over the death in service bit. I wouldn't usually count that as part of an estate calculation. Good to know but sort of like having a lottery ticket.

This is as I understand it:

So if you want DP to have the house outright for him to use and bequest as he sees fit (he could choose not to pass to your kids) then you just have a joint tenancy that falls to the survivor of you.

If you want to leave your share of the house in trust to him so that he has use of it and then that share would pass to your kids then you need to each own your share outright so that you can bequest it as you see fit (you could leave the house in trust to him, and it could go to your kids after his death but this would only be half of the house. He could leave his share to his second niece Twiggy if he wanted). That would be tenants in common.

It's a minefield. Marriage may further complicate matters but I'm no lawyer.

10 x salary death in service is unusually high, most employers pay 4 x salary. This benefit would likely go if you changed role. Your life assurance probably has an end date. If you live to retirement then both these will probably be gone so potentially your kids would have nothing.
tenants in common is the best way to go in your situation but you need to speak to a solicitor to get proper advice.

The life assurance end date is 100th birthday.
death in service is obviously whilst employed in the company. I have no plans on leaving 🤣

I suppose I just want yo cover everyone and make it as fair as possible.

I agree with previous posters who say tenants in common in your circumstances. I would want my kids to inherit whatever I put into the property plus growth over the years. You are going in owning half each so why should your partner inherit outright your half to the detriment of your children. As others have said he can be given the right to remain living in the property until after his death. If you do joint tenancy he gets your half too when you die and can then leave all of it to a new partner/their children/whoever he likes. I’m in similar circumstances and both my partner and I have children from previous relationships and we have done this for each other. We have made wills and have no plans to marry though, but our respective kids will get our respective half’s which seems fairest to us.

If you marry you need to draw up a new will to protect your children, because your old will immediately becomes void and everything goes to your spouse.

So unless you’re married the joint tenants / tenants in common thing won’t make any inheritance tax difference. ( if you were married you can inherit the other half without tax if joint ) are you putting in equal amounts to the house ?

The likely outcome is you will die in old age, so your policies will be irrelevant and your share of the house will be your major asset. You need to leave this to your children.

Yes putting in equal

If I die before my 100th birthday the life assurance will pay out.

Then you may as well do joint. We did in common because I own more. But with your other assets you’d probably do better to let him keep the house and then the kids have the other money? Just make sure your will is very structured and clear.

He has no dc, he wants his half to go to me on his death. Would TIC still be ok with this if his stipulates it goes to me anyway

This was my theory in a sense. They will have the life assurance. If I die before retirement they will also have my in service benefit. The house will be paid off through the insurance with the mortgage. So they are all sorted. 🤣

Prepared to be told otherwise though! I’m no good with this stuff 😩