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Legal matters

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Original poster

How best to protect any inheritance

38 replies

gotothecooler · 14/07/2020 09:28

To set the scene DH has 2 very grown up children, one of them we see and the other we don't. There is no reason or fall out, they have just dropped contact gradually, appear sporadically and been unhappy when DH wouldn't drop everything to go out and meet them. We don't have any money but we own our own house. In the future I will probably inherit between £50k & 70k and I want to know how best I can protect this money so it goes to my children if anything happened to me.

I'm in Scotland where you can't disinherit your children or your spouse so it's not a matter of simple will making. I don't want to leave him with nothing but I do have huge concerns that money from my inheritance may eventually go to his older D.C., which neither of us want. So he either gradually gives it to my D.C. when they are young (all but one would be adults though) or he simply spends it all, neither option give him a good financial situation though. Obviously I want him to have as much as he can, while protecting the money for our children.

Please don't think I'm being a cunty step parent, I'm really not. They are adults in their 40's who have never lived or stayed with us as part of the family unit (they were both married by the time DH and I got together) and while I get on fine with them, my money is for my children.

DH and I have been married for 20 years and have 4 D.C.

OP posts:

StCharlotte · 14/07/2020 21:21

Can you leave specific pecuniary bequests to your own DC? And then the rest is treated as normal?

chipsandpeas · 14/07/2020 21:22

seriously speak to a lawyer

BobbieDraper · 14/07/2020 21:26

I dont understand why you would ask this on mumsnet, where you will get answers based in what people believe the law should be (rather than what it actually is) and you will get answers based on english law with a "it might be different in Scotland" caveat.

Speak to a solicitor. That's where you will get the help you need.

Bemorechicken · 14/07/2020 21:28

No in Scotland. Speak to a solicitor.

Original poster

gotothecooler · 14/07/2020 21:35

I dont understand why you would ask this on mumsnet,

Well this morning I was pondering how things might go in the future and having seen some fabulous legal advice on here previously I thought it was worth an ask. Of course we are going to discuss it with a solicitor when the time comes, but for now it was just a bit of a general 'I wonder if anyone knows'. I also posted specifically in legal so I wouldn't get that type of arsey comment that belongs in AIBU.

Thanks to everyone who replied though.

OP posts:

saraclara · 14/07/2020 21:37

In England you can skip a generation when you inherit. So if I was to be left an inheritance, I could ask for it to be paid directly to my children, without any tax repercussions.
Is that the case in Scotland?

Obviously depending on the age of your children and whether or not you need to use some of the cash, that might not help you anyway. But it's just a thought.

Original poster

gotothecooler · 14/07/2020 21:43

No it's not. You can't disinherit them. I want the money to go to my children though, not any future generation.

OP posts:

Original poster

gotothecooler · 14/07/2020 21:45

Sorry I misread you there, doesn't really matter as DH can't disinherit his D.C. either way. We have no plans to use the money if we do get it, but if I die first I reckon he will have to spend it on our D.C. in order to prevent his from getting it, which is not ideal.

OP posts:

TimeWastingButFun · 14/07/2020 21:55

Could you put some into a trust for them now?

saraclara · 14/07/2020 22:14

@gotothecooler

I'm not sure if we're at cross purposes here.

If you inherit while living and have the cash paid directly to your children (I think it has to be within two years here in England), nobody is disinheriting anyone, surely?

Original poster

gotothecooler · 14/07/2020 22:21

If you inherit while living and have the cash paid directly to your children (I think it has to be within two years here in England), nobody is disinheriting anyone, surely?

Ah I see. I don't really want to give it to them at that point. I have no plans to use it but I would rather have it there just in case. If I give it to them straight away, well it's gone. I have to protect my future first I think. Covid has shown me just how easily people can lose everything.

OP posts:

Viviennemary · 14/07/2020 22:27

You need to speak to a solicitor. I dont think money which specifically is yours could be claimed by step children under Scots law. I expect the problem is if your DH inherits your money and then his children try to claim a share. It would only be a third in any case of the money but not property that they would be entitled to claim AFAIK.

Original poster

gotothecooler · 14/07/2020 22:31

Yes. This is as much as I know. If i die before him then they will have a claim. I do intend to speak to a solicitor and sort wills when the time comes. Maybe we will just spend it all in a Mercedes or something

OP posts:

saraclara · 14/07/2020 22:32

@gotothecooler

If you inherit while living and have the cash paid directly to your children (I think it has to be within two years here in England), nobody is disinheriting anyone, surely?

Yep. I understand that completely. I just thought I'd mention it in case it worked for you.

Theoretically, I stand to inherit something from an aunt. I've no idea how much (it's certainly not going to be remotely life changing) but either way, I won't need it. I'm retired, my pension is enough to live on and I have decent savings. It would be far more use to my kids, so when/if I do get anything when she dies, I'll use that legal route to pass it straight to them.

user1471464702 · 14/07/2020 22:34

You can gift money each year , pay off their mortgages Over time , and try to give them their cash now and overtime or if cannot afford this take money against the house equity, and let them have it now these are off the top of my head and not in any way sound legal advice just a thought good luck

AbbieLexie · 14/07/2020 22:37

A solicitor will advise but there is a way of protecting it.

titchy · 14/07/2020 22:41

When you inherit give it to your children, in trust if they are minors. Job done. Then it won't be part of your estate so no issue about you passing it on to your dh.

Sunrise234 · 14/07/2020 22:46

Sounds extreme but if you and your DH got divorced would this solve the issue?

Original poster

gotothecooler · 14/07/2020 22:49

@titchy

When you inherit give it to your children, in trust if they are minors. Job done. Then it won't be part of your estate so no issue about you passing it on to your dh.

I'm not willing to give it away immediately. I have no plans for it but at the same time I don't want to end up in a bad financial position when I could keep some as a back up. We are not huge earners, DH is disabled and lost his job a couple of years ago so it's just my business keeping us going. The logical solution is to give it directly to them but I have realised over the past 4 months that having some 'rainy day' money is a really good idea.

OP posts:

Original poster

gotothecooler · 14/07/2020 22:50

@Sunrise234

Sounds extreme but if you and your DH got divorced would this solve the issue?

Yeah, we won't be doing that.

OP posts:

Iflyaway · 14/07/2020 22:53

I could ask for it to be paid directly to my children, without any tax repercussions

Good luck with that one.

We had CGT on it, None of us even live in UK.

Viviennemary · 14/07/2020 22:56

I don't know why you are worrying. If the inherited money is in your name and you die your step children will have no claim. They will only have a claim if your DH then dies after having inherited the money from you. And surely that will be some time in the future though I appreciate you have to plan ahead.

Original poster

gotothecooler · 14/07/2020 22:59

I don't know why you are worrying.

I'm not worrying. It was a general question about a possible future situation. Not a big deal.

If the inherited money is in your name and you die your step children will have no claim. They will only have a claim if your DH then dies after having inherited the money from you.

Yes, i know this. I said this in the OP.

And surely that will be some time in the future though I appreciate you have to plan ahead.

It could be anytime, so whenever I have an inheritance I want to get it right with our wills, that's all.

OP posts:

Viviennemary · 14/07/2020 23:01

Sorry if I came over blunt. Hope you get it sorted.

CabernetSoWhat · 14/07/2020 23:04

Life interest trust? DH is entitled to the income for his lifetime and the capital goes to your DCs on his death. Can also be applied to property, so DH would have a home for life but your DCs would inherit on his death. No idea on the Scottish rules, though.

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