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Original poster

Wills - leaving money/house to kids

23 replies

GoodnightGrandma · 29/10/2021 09:13

I’m looking to redo my will, leaving everything to my children.
DH has a big private pension and some money.
But I’ve read somewhere that, if I were to die while my kids were younger, it might impact on them getting a first timer mortgage as if they inherit their part of my house it will be seen as them having already ‘owned’ a house.
I don’t want to disadvantage them, but I’d also like my will done and dusted for ever.

OP posts:
prh47bridge · 29/10/2021 11:28

If you leave the property to your children, they will not be eligible for any first time buyer schemes. Also, it isn't clear where you think your husband will live. You might want to consider leaving your husband a life interest in your share of the house with it passing to your children on his death.

00100001 · 29/10/2021 11:30

... but they'll have the advantage of having a free house... Confused

00100001 · 29/10/2021 11:31

And that free house will either be theirs to love in for free. Rent out for income, or sell to help with a massive deposit for their first house...

WhatDidISayAlan · 29/10/2021 11:38

No advice on the initial query but I’ve been advised to review my will every 10 years in case anything has changed, so I wouldn’t go for the done and dusted forever route.

I did mine 4 years ago and it’s already out of date - my little brother died this year who was due a share. If I hadn’t changed it the estate would be split between the remaining beneficiaries (I have no kids or spouse) - but I have changed it to ensure his share goes to his young daughter. Wills are always worth a review, either due to changes in circumstance, estate, or legislation changes.

Original poster
GoodnightGrandma · 29/10/2021 11:52

DH could take his half of this house and downsize, then he’s got lots of private pension to live on.
At the moment he can stay in my half of the house until he dies or remarry’s.
I might leave that in, I’m thinking about it.

OP posts:
Original poster
GoodnightGrandma · 29/10/2021 11:58

At the moment DH can live in my half (we’ve had it done so we both own 50%) until he dies or cohabitates/ gets married.
The children get anything that is in a bank account in my name only, DH gets everything else.
Because I don’t want to scupper their chance of a first time mortgage, I might change it so DH gets to stay in my half of the house and kids get my half of everything else.
My concern is that DH’s family are long lived, so I want my big going to the kids, not on his care.

OP posts:
Charley50 · 29/10/2021 12:02

I think the worth of half of a house is worth more than any first-time buyer benefits surely?
Are they DH children? Maybe he won't want to downsize if you die though?

Charley50 · 29/10/2021 12:03

Oh I just saw your last post. Your Estate will include your half of the house, however you word it. Or surely they would be missing our anyway?

Original poster
GoodnightGrandma · 29/10/2021 12:04

@Charley50

I think the worth of half of a house is worth more than any first-time buyer benefits surely? Are they DH children? Maybe he won't want to downsize if you die though?
If he only owns half the house he’ll have to downsize. Yes, they are our kids.
OP posts:
Bum1 · 29/10/2021 12:05

My concern is that DH’s family are long lived, so I want my big going to the kids, not on his care.

And they say romance is dead.

Original poster
GoodnightGrandma · 29/10/2021 12:07

@Bum1

My concern is that DH’s family are long lived, so I want my big going to the kids, not on his care.

And they say romance is dead.

It’s about being practical, not romantic.
OP posts:
saleorbouy · 29/10/2021 12:08

Is the property held jointly as "tenants in common"?

Original poster
GoodnightGrandma · 29/10/2021 12:09

@saleorbouy

Is the property held jointly as "tenants in common"?
It’s the one where we individually own 50%, we don’t jointly own 100%.
OP posts:
prh47bridge · 29/10/2021 13:05

@GoodnightGrandma

At the moment DH can live in my half (we’ve had it done so we both own 50%) until he dies or cohabitates/ gets married. The children get anything that is in a bank account in my name only, DH gets everything else. Because I don’t want to scupper their chance of a first time mortgage, I might change it so DH gets to stay in my half of the house and kids get my half of everything else. My concern is that DH’s family are long lived, so I want my big going to the kids, not on his care.
If you give your husband a life interest in your half of the house it won't go on his care. It won't be his and he can't touch the capital.

On the other hand, if you don't give your husband a life interest, your children may be able to force him to sell even if he isn't cohabiting or remarrying.

DaisyandSimeon · 05/11/2021 11:36

Have you had a conversation with your DH and ask him what his preferences are? He may want to remain in the family home for life if it has memories, so would like a life interest. He may prefer to downsize and take his 50% and have a percentage share in your half which would be a transferable trust, and would ultmately revert back to the children. That would free up money for the children to put towards a mortgage and they would not be property owners as such. There are lots of ways of doing it but I suggest discussing what would suit your DH.

DaisyandSimeon · 05/11/2021 11:37

He would only need part of your share (in trust) if his 50% was inadequate for a suitable property.

Original poster
GoodnightGrandma · 07/11/2021 17:40

When I did my will I was told that he could stay in the house as long as he wasn’t cohabiting or remarried.
If he wanted to sell the house he would have his 50%, plus he could use half of my 50% on his new house and divide the other half between the kids. Then they’d get my other half when he died.
That’s how it was explained to us.

OP posts:
Original poster
GoodnightGrandma · 07/11/2021 17:41

And he’s got a very big pension plus half of this house, so he’ll be ok.

OP posts:
DaisyandSimeon · 09/11/2021 20:35

I'm pretty sure he could cohabit/remarry/have a lodger, providing they signed a disclaimer having no claim on your half.

prh47bridge · 09/11/2021 21:35

This sounds like there is a life interest trust which terminates when the OP's husband cohabits or remarries. If that is the case, he cannot cohabit or remarry and remain in the house. If that is not the case, he can do what he likes and no disclaimer is needed - his new wife or partner would not be able to establish a claim against the OP's half of the house.

TizerorFizz · 10/11/2021 00:11

If the house share is transferred straight to the DC, and not DH, won’t there be IHT to pay immediately? Assuming it’s an estate liable to attract IHT of course.,

cabbageking · 10/11/2021 03:35

@WhatDidISayAlan

No advice on the initial query but I’ve been advised to review my will every 10 years in case anything has changed, so I wouldn’t go for the done and dusted forever route.

I did mine 4 years ago and it’s already out of date - my little brother died this year who was due a share. If I hadn’t changed it the estate would be split between the remaining beneficiaries (I have no kids or spouse) - but I have changed it to ensure his share goes to his young daughter. Wills are always worth a review, either due to changes in circumstance, estate, or legislation changes.

The share that your brother would have received would still go to his children despite his death, without any need to change a will. If a solicitor advised you I wouldn't go back to them.
madisonbridges · 10/11/2021 03:41

What a bastard husband staying alive until he's old! No bloody consideration.

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