Inheritance

[Zarah786]

My DP and I were discussing inheritance yesterday and not too sure if we know exactly what will happen.

We jointly own our family home. I have two rental properties in my name and other half has two in his name. We don't want to get officially married for several reasons (we have a cultural marriage so to us we are married just not in paper).

We know that if one of us passes the next of kin would be our child unless we specify so in our will.

So just for example, if one of us passes and our two children then inherit these rental properties, does the other surviving parent help manage the properties or would the law require someone else to until the child turns 18?

I'd recommend discussing your options with a solicitor. You own 5 properties between you, it is worth it.

With that amount of property, you'll have a hefty inheritance tax bill if you're not married. So managing the properties may not be an issue.

@Zarah786 "does the other surviving parent help manage the properties or would the law require someone else to until the child turns 18?"

If you're asking, are you legally obliged to appoint someone else to manage the property for the child, I'm 99% sure the answer is no.

there's a Legal Board, you could ask for this question to be moved there.

But you need to see a solicitor to be sure how all this would work.

Also, be aware of the hefty inheritance tax. I don't fully understand it but I think you also get extra usefulness if you are legally married

Not just spouse to spouse going tax free but some kind of better implication for your DC as well. That might be later on when you're both gone I'm not sure.

I assume all of your parents have passed away?

Because your parents would inherit whats yours if you died and your DHs parents would inherit his things if he died.

I suggest you get legal advice and make a will as a matter of urgency to specify what you WANT to happen, not what you think will happen.

Its normal that where children inherit things are in trust until they are 18 (or 21 or 25 depending on your will) and your appointed executors would be responsible for sorting this.

Given your assets being legally married would be beneficial to you both and if one of you were to die the other wouldnt need to pay inheritance tax.

Moral of story, get legal advice asap

Oh I didn't realise.

My partners mum and both my parents are still alive. I always thought your own children superseded parents..

Nice flow chart here: https://www.marottaonmoney.com/who-gets-your-stuff-when-you-die-without-a-will/

@Zarah786 "I always thought your own children superseded parents.."

in the UK, I thought that too.

are you in the UK? No idea what IHT is like in other countries but I think the bottom line, wherever you are, you need proper legal advice.

Also, if you are in the UK, if one needs to speak on behalf of the other for health reasons, heaven forbid, you won't have that either.

though I suppose a hospital doesn't actually ask for a marriage certificate....but mum knows a few people who married later in life for that reason as well as IHT.

Their parents wouldn't inherit anything if they have a child.

That's a US company. Rules differ by country.

And having had a closer look, I'm not sure I'd trust that flowchart even if I lived in Virginia. The great grandparents loop makes no sense, and the married, children from only current relationship path looks unusual.

England & Wales Inheritance Chart

OP:
You need to seek advice and make a will.

Property left to an U18 needs to be left in trust - this can be sorted in a Will.

In your will You can leave your property to your Dp or directly to your Dc.

Because you are not married, inheritance tax on your estate over £325 would be due.

You can leave your estate if any value to your spouse free of IHT if you are married.

If you leave your share of your main residence / family home to your children you get an allowance of £325 + an extra £175 for the home before IHT is payable.

IMO beware of leaving everything to your spouse. Many people remarry, leave everything to a new partner and a step parent does not then leave the estate to the children.

Married, for the purposes of IHT or in a Will
means legally married as recognised in the UK.

Thank you

You need an estate planner who will give you all the advice about property and trusts, IHT, as well as how your will should be structured.