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

He would do this and has said he would.

People say they’ll do lots of things and then change their mind. I would want it all sorted out for my children in advance of my death. The chances are you won’t die while you still have your very generous death in service, so I would personally forget about that for the longer term. Sounds like you have a whole of life insurance worth £300,000 so they would get £150,000 each whenever you die - this may sound like a lot of money at the moment but if you die in 40 years time it might not be that much. I’m also assuming it’s not one where the premiums are reviewable – with these people often cancel them later as the premiums go up as they get older and become un affordable. I think if you did joint tenancy, you could regret it and and it could become the source of worry later on becauseI think there are risks attached to that. I can’t really see any reason why you would do joint tenancy in your circumstances. Most likely when your children get the inheritance they will use the money to buy a house or move to a bigger house perhaps if they have families of their own by then so it would be good for them to have some inheritance from a property, the value of which will have most likely followed the property market in terms of price inflation.

Can we write this into a will in advance, can we be joint tenants and then state that on both deaths the house goes to dc?

Surely who would care for your DC if you die would bea big consideration. Eg. If your sister will take them then you'd have to leave her money to care for DC.

Their dad would care for them (as long as he is alive)

You've not said how old your children are, nor your ages. It is wise to revisit your will every few years to ensure it is still relevant and/or covers a material change of circumstances affecting any of you. You can change the house ownership from joint tenants to tenants in common if you wish. It's not fixed in stone. HOWEVER, it is best that you seek legal advice on this. It doesn't need to get complicated but you should understand the implications of decisions you make now. A solicitor will be able to guide you.

Do not rely on your DP leaving the house to your kids upon his death. He may very well meet someone else after you pass and forget all about his promises to you.

They are 12 and 9 right now.

Are you married? Either way whether you are or not, buy the house as tenants in common. Then get a trust will done and leave everything to your children. This way their inheritance is secured & your dp can leave his estate to whomever he wants.

Also consider that inheritance tax will need to be paid on that value estate because you are not married.

No we are not married, but we will eventually be

if he wishes

Tenants in common and leave him your share in a will for now. If you lose your job or just change your mind later, you can easily change your will in your children's favour.

£150k won't be worth as much in 20 years.

When a person dies the way they structure their will takes on emotional value. From the outside it would appear you are leaving more to your partner, over your children and potential grandchildren.

If he invest 50% then let that share remain with him, the rest to your children.

So if we choose tenants in common now we can change it to joint tenants if we want or vice versa? Or like you say if I lose my job I can change it then?

In 20years my dc will be in their late 30’s and will have been hopefully put through university and I will have helped them with buying a house if I’m still in a position to do so (as I am now) they will also stand to inherit from their dad (who has a lot too) I want it to be fair believe me, fair for everyone. My DP will only have his home. That’s it. They will have inheritance from two well off parents and they will be in their 30’s/40’s. 150k is a nice little windfall whichever way it happens, it’s more than I stand to inherit 🤣🤣

But i understand what you are saying completely.

You can change from joint tenants to tenants in common and the other way around, but why bother? Just go for tenants in common and then you can choose whom to leave your share to in your will. You can easily change your will, you never know what the future holds and what needs your adult children will have.

No, if you are joint tenants, on first death the property immediately belongs to the joint owner.
That means that the remaining owner can leave the house to whoever they want.
If you write wills as you suggest, you can both change your wills at any time.

Even if they are mutual wills?

Also, remember any will you write now will be void once you marry, you will need to make another Will post marriage.

She did say the house would go to the children on the second death, so yes, the OP can do what she suggests

Yes, just because you write mirror wills doesn’t mean you can’t change your Will at a later date.
Again getting married will require you to write new wills.

A mutual will is different to a mirror will I thought…

As far as I can read mutual wills cannot be changed after first death.

Sorry, you’re right.
we will not write mutual Wills as they have the potential to cause immense problems as if circumstances change your Will doesn’t.
Much easier to do TIC