Putting money in trust for a GC and divorcing

[Antoniabegonia]

I intend for my granddaughter to have my share of a jointly owned house when I die (will made accordingly). I also have 20K savings which will go to GD if it is not spent by then.

I am looking at getting divorced after a long and abusive marriage and don't wish for my H to get any of this money (he has more in savings which he has hidden, according to him).

If I put this money into a trust fund or savings account for my GD now and start divorce proceedings in 6 months time would a court say I was still the owner of this money and pay him half, which H has said he will do? It is at the moment in my bank account so easily traceable.

I may at some point after the divorce need this money to help house myself so in a way I am trying to keep it out of his hands. My GD is severely disabled in case this is relevant.

Depends what sort of trust you put it into. If you simply put £20k into a bank account in your GD's name, with you as trustee, you can still access it whenever you wish. If you mean that you wish to pass the cash and your share of the house to your GD on your death, of course you can change your will at any time so again until your death it's still yours and again it will be taken into account in the divorce.

The court won't necessarily order you to pay your husband half of your assets. It will look at all of your and his assets, no matter whose name they're in and come to a decision based on length of marriage, contributions made, your respective needs, assets and income. (it's a bit more complex than that, but that's the gist).

Incidentally, if your GD is severely disabled you would probably be better, if you're making her a gift in your will, not to give her anything directly, but put it into a disabled person's discretionary trust to protect it against a 3rd party influencing her into giving it away, and also to stop it potentially being taken into account for means tested benefits.

You need to see a solicitor, or possibly two; a family lawyer to advise on the divorce aspect, and a wills solicitor or will writer for the trust aspect.

You must also beware the tax implications of putting your home in a trust. There may be CGT to pay, and trusts pay tax on assets every 10 years.

Good points there from Collaborate. You really do need to seek legal advice as there are several potential flaws in your plan.

Many thanks. The will is already made out to take into account means testing and is given to the parents . Of course I will have my will rewritten after divorce but at least at the moment it is secure.

The trust idea with myself as trustee is ideal and I will look into that but it is not as bad as I thought as H has assets almost in excess of my savings, plus savings in his own name which he has 'hidden'. Not bothered as I only want a share of his pension and vice versa.

I will look at other ways wrt the house I buy with the equity.

That's brilliant babybarrister. The money was inherited from my mother, a car insurance accident payout and a lump sum when I retired. Paper trail for all of it. Nothing to do with H who had similar monies from work and family inheritance. None of which I want.

unless your in Scotland inheritance does make up part of the assits of marrege and can be claimed against.

Babybarrister is right if you give away £20k in trust / loan to friend / hide etc you can give it away but it could be made up by losing assists in value of it eg you get 20k less of the house value etc