How best to protect any inheritance

[gotothecooler]

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.

Life interest trust? DH is entitled to the income for his lifetime and the capital goes to your DCs on his death.

I will look I to it, I suspect it wouldn't apply here as he can't disinherit them.

Can also be applied to property, so DH would have a home for life but your DCs would inherit on his death

The house is very different. It is covered under the will so I'm not worried about that; it's just the money.

Sorry and I can't disinherit him. So he can't have an interest he must have an inheritance.

I set up an ISA, and my will specifies that the contents of that account (not a specific amount) go to my nephew, not to my partner (who gets other stuff). This means that I still have access to it if I need it, can add to it if I want, and whatever's in it when I die goes to him. I am in England, though

@crabbyoldbat

I set up an ISA, and my will specifies that the contents of that account (not a specific amount) go to my nephew, not to my partner (who gets other stuff). This means that I still have access to it if I need it, can add to it if I want, and whatever's in it when I die goes to him. I am in England, though

Thanks, that's the issue. I cannot disinherit them.

Would you consider buying a second home with it as a rental investment? Scottish inheritance doesn't apply to houses does it? Or would it if wasn't your main home?

Alternatively do you trust your dh to pass his share of it to your children upon your death?

Would you consider buying a second home with it as a rental investment? Scottish inheritance doesn't apply to houses does it? Or would it if wasn't your main home?

A second property is the ideal solution but I don't know if it would be affordable.

Alternatively do you trust your dh to pass his share of it to your children upon your death?

I wouldn't want him to, he would be more likely to need the financial back up without me.

A second property is the ideal solution but I don't know if it would be affordable.

I'm in Scotland too. If I inherited £75kish I could afford to buy a fairly pleasant 1-bed (or a less pleasant 2-bed) flat in my town and let it out for about £400pm. Obviously, there are letting costs and tax issues, but it would still give you a wee bit of income.

If you live in a more expensive area, maybe look around for a cheaper area and buy an investment property?

You could leave the flat to your own children in your will, but the revenue to your DH until his death.

Something like this even...
www.zoopla.co.uk/for-sale/details/55514815?search_identifier=fc678ce4ba1271fba6fcd93ef600e56c

Between £50k and £70k is likely to buy me a problem tbh. I can't afford to put anything of my own into it. I have looked about locally and it's all run down flats that need work doing in bad areas that would be affordable in such a low budget. With no back up funds it seems like too much of a risk to sink it all into something that needs more money.

I have looked about locally and it's all run down flats

It doesn't have to be your area, it can be any. Often landlords will sell long-term tenanted properties as investments. You can employ a managing agent.

Nobody from you family will ever be living in it, so location isn't as important.

@gotothecooler

Between £50k and £70k is likely to buy me a problem tbh. I can't afford to put anything of my own into it. I have looked about locally and it's all run down flats that need work doing in bad areas that would be affordable in such a low budget. With no back up funds it seems like too much of a risk to sink it all into something that needs more money.

You can get a BTL mortgage with only 20% deposit. Not that I'd recommend getting the biggest mortgage in offer, but even getting a 60% mortgage the maths might work, and give you and income as your dh cannot work.

Unfortunately a mortgage is not an option.

The legal rights of your spouse Or dcs in Scotland is only a third of your moveable (ie not land or buildings) estate (one third to spouse and one third between dcs). So you can will the rest of your estate as you see fit. Also as others have said, you can give away property during your lifetime if you prefer.