Does this sound reasonable - provision for children in case of our deaths

[Merryoldgoat]

When we originally had our boys PIL were named as guardians and then as they got too old it was my aunt (who is only 15 years older than me) who the boys love.

Aunt has a low income and lives in council accommodation. If she moved to our house she’d give up her tenancy and therefore be in an insecure position once the boys got to a certain point and needed money from their estate.

Complicating factor: if we predeceased PIL, the boys would inherit from them - probably around £0.5m between them.

We’d leave around £500k in cash (from insurance and Death in service benefits) plus the house worth £700k ish.

I’ll seek proper advice of course but in terms of my aunt, I was thinking that we need to provide her with money for a home once she has stopped living with the boys as she’s given up her secure tenancy.

Does this seem sensible? I’d like to have an idea of what I’d like to achieve before I go to see an estate planner.

Any obvious pitfalls?

It sounds generous and reasonable towards your aunt to me. But complicated the more I think about it! I’m sure a good estate planner will help you navigate all this as they’ll be used to thinking through all eventualities. My solicitor suggested I write down how I’d envisioned bringing my son up to guide guardians as to lifestyle choices, so you might want to think about that too.

I’d think about the practicalities/safety of your house being split up as intended as your boys get older and they and your aunt want to go their separate ways. Eg you’d probably want an agreement that the aunt would be able to live in the house until the last boy leaves home, and would you want the house to be sold and proceeds split between the three of them at that point? Or would you give the aunt a bit of grace to catch her breath after the nest is empty? Assuming the boys go to uni, would you be wanting her to stay in the house during uni years for them to come back in the holidays?

What if house prices have shot up by the point the aunt is relieved of guardian duties? Would you stipulate a certain amount of inheritance for your aunt or would you want to enable her to buy somewhere of similar size/value at that point? E.g. leave a % of your house in the hopes that it keeps in line with the housing market?

Would you want to (and can you legally?) stipulate the boys and your aunt live in your family house until they’re grown up? I’m not sure on the legalities, but I’d ask your estate planner what’s possible eg holding the house in trust until a certain date? Or would you have to trust that your aunt would follow your wishes as far as possible?

What happens if your aunt wants to move somewhere else while the boys are still young, e.g. she gets a job opportunity or wants to move in or move cities with a new partner? I think to a certain extent after your death you have to trust that people will care for your boys the best they can, but that life ebbs and flows and things change.

I wouldn’t rest your planning on someone else’s planning tbh. What if PIL change their minds? What if they do or don’t tell you they’ve changed their minds?

What if aunt dies before you or at the same time e.g. car crash all together? You might want a plan B.

Jesus Christ so much to think about isn’t there??

Youngest unlikely ever to live independently, probably would need supported living. Oldest will but university unlikely.

Christ knows there’s so much to consider.

What if aunt dies before you or at the same time e.g. car crash all together? You might want a plan B.

We’ll have to go full Royal protocol and never travel together 🤣

I think that is a significant complicating factor and you’d benefit from some proper advice around the best way to leave him money in a way that secures his future housing as best as possible.

How old are the children now?

I’d agree, possibly looking at residential supported accommodation in future. You might find any inheritance eaten up in fees over a couple of years. It’d be better to consider a trust that will pay out for treats, holidays and enriching activities.

12 & 8.

I think we will have to have several appointments. It’s just really hard. Thinking about these really awful situations is sad anyway let alone thinking about leaving behind my beauty it’s who need to much from us.

I'd do something like a trust that is to be used to buy a house that your children own, but she has the right to live in it until she passes.

Ours is written in a way that my mum would take the children, in our house, and she’d have the right to live in the house until she died herself, at which point, the kids get their inheritance.

Given aunt is 15 years older than you, if she dies of natural causes well into old age, and that’s how you’d expect to go yourself, then your DC are still getting their inheritance 15 years earlier than they would have if you were still alive.

This seems sensible to me.

Thank you - this is really helpful.