Deed of trust - 5 years after death doesn't sound like very long?

[Stressymadre]

After some advice, please. Partner and I are buying a house together as tenants in common as he is contributing more deposit than me. All that is sorted. What we're struggling with is this the bit to do with our share of the house when one of us dies. I am 42, he is 46. I have 2 kids (10 and 14), he has none. My children will inherit my share of the house. My children will also inherit his share of the house. The draft proposal from our solicitor states that upon one of us dying the other can stay in the house a max of 5 years before they have to sell or buy the inheritees out. If he or I were to remarry or move someone in then we would need to immediately buy out the inheritees or sell up. So my question is... is 5 years fair? Doesn't seem very long but then I dont want my kids having to wait around for like 20 years for my inheritance! Has anyone done something similar and able to share their views?

I've heard of a number of cases where the limit is the year the youngest child finishes school. This could be 18 years, though, and it does create problems.

On the face of it, five years should be long enough to sort things out. There could be issues if, say, the remaining parent or one of the kids has a debilitating condition making it complicated for them to move home. That would be so regardless, though, and would rely on the inheritors being able to negotiate amongst themselves.

If you die, who will look after the kids? I would not want my kids moved out of their home until
18, although depends on the arrangements you’ve made for them.

So when either of you die your children inherit after 5 years? My AC and Step AC are going to have to wait for their inheritance. Im hoping for some considerable time. You may want to reconsider the wording of your wills.

If you're worried about them getting something why not look at a lifetime trust for your husband but get life insurance to leave to the kids.

@abricotine unfortunately legally they have to go to their dad... eldest would choose not to though. My youngest would have to for now.

I would say it was normal for the surviving spouse to stay in the property for life.

@Wowsersbrowsers we will be writing new wills once the house purchase goes through. At the minute my children inherit immediately as I own my own house and am not married.

I do actually have life insurance... very good point!!

I’d say when the youngest DC leaves full time education, or 5yrs if over 18. That should be sufficient time to either sell or buy out person / people inheriting.

Makes sense… in which case the shorter time period seems sensible if you die.
we have a trust for ours; they won’t get it all until they are 25 I think and can access it for various things (education etc)
I don’t quite understand why you’d structure this way if he dies (and your kids can force sale after the period) but it’s a personal decision I guess.

My thought too

We have in our will lifetime interest for the surviving spouse unless the surviving spouse gets into a new relationship and wants to forgo the lifetime interest. We have it stated that a surviving spouse cannot move anyone into the property or have a romantic interest staying over. The house is for the surviving spouse and them alone.

We have 4 executors set up to oversee the management of the property with our own chosen people as benefactors.

Doing the same but with adult children. We’ve gone for five years. It was a bit of a moment when I realised I’m very unlikely to be able to stay in the house longer than 5 years after dp’s death (it’s an expensive house to run and I won’t have cash to buy out his children), but now I’ve taken that in, i have an outline plan in my head for that eventuality.

Seems to me that ‘5 years or until youngest turns 21’ would be more than reasonable. I think 18 is a bit young these days.

I’ve seen that get difficult though when surviving spouse has outlived their former spouse by 30 years and not maintained the property. People have had to pay extra stamp duty as technically own another house. I think if you can it’s better to get it settled, 5 years sounds reasonable to me.

Have you and your partner lived together before?

Just reading that you already own your own home. Are you sure you want to leap into buying a property with someone? Especially when you have young children.

it could be worded differently for each of you, your DP could give you an interest in the house until your youngest finishes secondary education or age 19 ( as some will be over 18 sitting A levels) provided no remarriage or cohabitation as youngest is 10 you don't want the 5 years finishing when he is just about to take exams )
also yours could be worded that your partner can remain upto 5 years with no remarriage or cohabitation as your children would leave to live with their father however do make sure terms are such that their Father will have enough to pay for extras for them specially if it would be a drop in life style without him being able to feather his nest

I suppose you should think about whether you/partner would be in a position to house yourselves for 50% of the value of the house.
Our youngest is 18 and we are mid/late 50s. House is worth £550k. In reality if one of us dies and the other wanted to downsize, they would need more than half to get something decent.

We own as tenants in common and have a life time interest in the property. There won’t be any rush for the survivor to move out and sell, the kids will have to wait for their inheritances.

Keeping your own house is, imo, far better protection for your dc.

I don't think five years is too short. I know a couple who have done this, but in their case it's two years.

You need to think about what happens if you live another 30 years. Do you really want a man in his 80s move out of the house he's lived in for nearly half his life!

@ColdAsAWitches If they both live another 20-30 years, they may well decide to downsize anyway! And someone who's alone in their 80s is even more likely to do so...
And it would be more sensible for a widower to move house at the age of 80 than to wait until he's even older (eg 85 or 90), so I don't think the OP should be worried about that.

My parents were tenants in common. The will says their half goes in trust for us, the other half they retain the right tolive there until they die but are totally responsible for the upkeep

my father died 17 years ago, my mum is in her nineties now.

idi t see why one partner should be hurried out of a house, or have to buy out anyone

My dear friend was removed from the property within 24 hours of his partners death. It was horrendous for them so I commend everyone in a live in relationship or married who are thinking about what happens at death to the remaining partner.

I agree that a life interest is more usual, and five years isn't a long time.

Is that reasonable for people in their 40s though? Your children could wait 50 years to inherit a house you bought with your own hard earned money from before you met a DH of 5 years?

And he would re-marry. They do.

Wills need to be appropriate for the next 5 or 10 years and then reviewed.