Tenants in common or joint tenancy

[sunshineandhappy]

We've got to decide which one we want. Both putting in 50% but both with a bit of equity we would like to leave for our respective children at some point. I don't want them to be able to make him homeless if something happens to me, but I don't want to have to rely on how his will is written further down the line, if he remarried for example. We both absolutely trust each other, but I would like to protect maybe a third of my 50% for the children at some point in the future. Is joint tenancy with a will specifying this the best way forward?

I would go for tenancy in common and with your half entirely to your children in your position. As you both have children I don't really see why your partner should get any of your assets at death. Am assuming you are not married.

Joint tenants - if one dies, the other inherits the whole asset.

Tenants in common - if one dies, the portion belonging to the other can be left in their will wherever they want (portion is not necessarily half - can be more or less)

So yes, tenants in common might suit your situation. However if one of you died and the children of the other wanted their share, would the survivor then be put out of their family home - i.e. have to sell up in order to give the children their share of their inheritance? Would then the survivor be left with some cash, but not enough to buy again?

If you want to leave some assets for our children, maybe what you should do is put a life assurance policy in place on your own life, and specify in your will that the proceeds are to go to your children (in lieu of their share of the family home).

This means that your children have access to cash, rather than having to sell a property to realise a share in it, and your partner can inherit the full family home and not have to sell up.

If you wanted your partner not to have full ownership, but to still have somewhere to live, you could specify in your will that they are to have a life interest in your half of the property (so they can live there for the rest of their life).

Then, on their death, you can specify that your share of the property passes to your children.

All the above needs to be addressed and documented properly and clearly, so please consult a solicitor! Also to avoid family infighting, make it clear to everyone what you intend to happen - so no one gets a nasty surprise when the will is read. (in Ireland there's a saying that if there's a death there is a party/wake, and then a row over the will)

*not the children of the other, should be the children of the deceased!

I agree that a life interest in possession trust would be the best way forward, which will only take effect if the property is held as tenants in common.

Remember also that if you move, the new property must be bought as tenants in common.

I just would never accept that. My assets got o my children and if a man cannot earn enough to buy his own place to live - that's tough. The children won't have to wait another 20 years after I die waiting for him to - he can get out right away and house himself.

Thank you everyone. I'm trying to protect the equity I was awarded at my divorce, some of which I think should be ring-fenced for the children, in the future, and the housing needs of my partner. In the same way he is doing the same for me and his children. Surely nobody wants their life partner to be forced to sell their home when they have just been widowed? Both of us have housed ourselves on our own incomes before this joint purchase.
I think I'm going to go for TIC and will a proportion to the children, but with a life interest for my partner.

I'm a will writer and am writing a lot of life interest trusts these days as more people are in blended families.

It will cost a bit more than a standard will (I charge £80 on top for a LIT but some firms charge a lot more).

Do make sure that you don't have a joint tenancy, or the trust won't work.

Thank you for your advice

I think sunshine's plan is more common than mine (mine being that my children get everything of mine). We do have quite an expensive house so it would be massive unfair if a new boyfriend or husband got it after a short marriage if I died suddenly.