Writing Wills - severing joint tenancy?

[SockQueen]

I feel terrible that I've not dealt with this before, but here we go. Finally got around to consulting a Will writing company to sort out Wills for DH and me. On paper our situation should be fairly straightforward - married 10 years, own our house (mortgaged) as joint tenants, roughly similar amounts of savings/investments, two DC together and no other kids. We have already informally discussed guardianship for the DC with BiL & SiL (DH's brother & wife). So far, so good. And if one of us died intestate right now, apart from faff getting probate sorted, it should be not too complicated anyway, but better to sort out officially!

But the adviser suggested we consider changing our joint tenancy to tenants-in-common. She said there could be benefits to us/our DC if one of us died much earlier and the survivor remarried, or if one of us needs to go into care. It would cost a few hundred pounds more to do than just the basic Wills, but could it save us more in the long run? And if it's so beneficial, why wouldn't everyone do it?

It’s a difficult one!

I’ve always thought that if I suddenly died, the last thing I’d want him to have to worry about is he’d just lost half his home too. What if he wanted to move somewhere else, or indeed, did meet someone and wanted a life with them. I trust he’d ensure the DC were looked after, but I’d want him to have a good standard of life in the meantime.

Likewise, if he died mid-70’s and a few years later I needed to go into care, i’d like to go into a decent care home that looked after me, not one that stank of urine and faeces and was all the council could afford for me, because after years of working, I’d like a comfortable and lovely care home, and I’m sorry if that means the DC aren’t going to get a huge payout when they die and have to work themselves…

It could make a huge difference.

If you don't sever the joint tenancy, when you die the house will automatically become his. If he then remarries, that would invalidate his will. If he dies without making a new will, his estate (including the house) would go to his new wife. Your children would get nothing.

On the other hand, if you sever the joint tenancy as the adviser suggests, you can leave him a life interest in your 50% of the house with it passing to your children when he dies. That way he does not lose 50% of his home, but your children are guaranteed to inherit 50% of it whatever happens. He would still be able to live in the house. If he wanted to move elsewhere, he could do so, but your children's share would be preserved.

Like @AnotherDelphinium, I trust my husband to provide for our children if I die first and I want him to have the flexibility to do that however suits him best - for example, he might choose to sell our house, move closer to his family (which could release a lot of capital) and work less to be around for them more. Or maybe he’d want to buy somewhere bigger to have room for family visits or live in childcare. I’d want to be able to weigh up the same choices if it was him who died first. I guess it’s about how you see your house - I don’t see it as my children’s inheritance but their home. If there’s money left for them when we die then great. But it’s not the basis on which I’m making decisions about Wills etc and so leaving a share to them on my death, which might make it harder for my husband to provide them with the best home for the rest of their childhood, is not a good option for me.

@HeyDiddleDee

Like *@AnotherDelphinium*, I trust my husband to provide for our children if I die first and I want him to have the flexibility to do that however suits him best - for example, he might choose to sell our house, move closer to his family (which could release a lot of capital) and work less to be around for them more. Or maybe he’d want to buy somewhere bigger to have room for family visits or live in childcare. I’d want to be able to weigh up the same choices if it was him who died first. I guess it’s about how you see your house - I don’t see it as my children’s inheritance but their home. If there’s money left for them when we die then great. But it’s not the basis on which I’m making decisions about Wills etc and so leaving a share to them on my death, which might make it harder for my husband to provide them with the best home for the rest of their childhood, is not a good option for me.

If you sever the joint tenancy, you wouldn't normally leave your share directly to your children on your death. You would give your husband a life interest in your half of the house. That allows him to do all the things you list - move closer to his family, downsize, buy something bigger or whatever. The only things it prevents him from doing are spending the capital from your half of the house (other than using it to buy another property) or leaving it to someone else.

@prh47bridge yes but I’d like him to be able to spend the capital if he thinks it’s the best way to look after our children 😊

I've read too many horror stories on this site to leave it to chance. All it takes is for a new marriage to void an existing will and the partner to not bother doing a new will or leaving everything to new spouse.

My DH isnt malicious, just clueless and trusting.

We did it after being joint tenants, for the reasons listed. We just weren't aware when we took on the mortgage.