Active discussions

Meet the Other Phone. Only the apps you allow.

Meet the Other Phone.
Only the apps you allow.

Buy now

Please or to access all these features

Talk
Legal matters

Mumsnet has not checked the qualifications of anyone posting here. If you have any legal concerns we suggest you consult a solicitor.

Original poster

Will dillemma. Trust fund?

57 replies

ComeSailAway · 20/03/2022 14:24

Hi all,

I am about to write a will having received a terminal diagnosis.

I want to leave the majority of my modest estate (I have a house and some money from a recent inheritance) to my long-term partner. We are not married. I have other family, including siblings and nieces/nephews who would also benefit from the money but partner is my first priority.

He is financially destitute and has several siblings/nieces/nephews. His siblings are comparitavely well-off (second homes, rental properties etc).

So here is my problem: I would like partner to also make a will, stating that upon his death the remainder of my estate (if there is anything left) will revert to my family. He agrees in principle but won't actually do anything about it. Time is ticking on and I am due to have surgery soon.

Is there any other way of putting my wishes into effect? If I leave my estate in a "Trust fund" for example? I don't want to restrict what he can do with the property/money but I don't see why his brothers should inherit my parents' money if something happens to him.

Any advice will be gratefully received.

OP posts:
Original poster
ComeSailAway · 20/03/2022 19:37

Thank you all for the suggestions and advice! So helpful. Star I will consult a trust and estates specialist. I forgot about inheritance tax too.

OP posts:
londonmummy1966 · 20/03/2022 23:27

The issue everyone is raising about not leaving the property in trust is a tax one. As a former tax professional I would just say that sometimes family dispositions are more important than tax. If you can marry your DP that is great but if you can't for some reason don't let the tax tail wag the family dog if there are good reasons otherwise.

dane8 · 21/03/2022 00:13

This reply has been deleted

This has been deleted by MNHQ for breaking our Talk Guidelines.

Mumblechum0 · 21/03/2022 00:38

OP, I'm sorry you're going through this.

Thanks for the recommendation @FinallyHere .

To repeat what many pps have said, this is a classic life interest in possession trust scenario. If I were writing your will, I'd include provision for rather trust to end on your husband's remarriage or death, whichever is the earlier, but not all practitioners include that.

You should also gift him the household effects, but with mementos to other family and friends, and you can then decide whether your residuary estate should all go to your husband, or split it.

Also think about what should happen in the event of your husband predeceasing you.

Including a life interest trust shouldn't cost a huge amount; I charge £100 plus the basic Will fee.

Do you have your LPAs set up already? That would also be a sensible thing to do.

AtillatheHun · 21/03/2022 08:22

Much of the advice given is only good if he is your husband, which he currently isn’t. Marrying (you don’t have to have an actual “wedding” if you don’t want one) will save a fortune in lawyers fees and tax! It will achieve a lot of what you want to do

Burghwallis · 21/03/2022 09:12

Obviously IHT is only payable above a certain value so if it’s less than the threshold, no need to get married.

Original poster
ComeSailAway · 21/03/2022 16:27

I wouldn't want him to lose the house if he got married. But if he predeceased his wife, I would want my family to receive the property.

I have just looked up IHT and I don't think I would qualify anyway (estate worth less than £500k).

@Mumblechum0 going to Google "LPA" now.

OP posts:
AtillatheHun · 21/03/2022 19:06

The IHT threshold is £325k, so anything in excess of that is taxed at 40% unless you’re married.

anotheranon22 · 21/03/2022 19:08

Look up mutual wills OP.

gogohm · 21/03/2022 19:13

Set up a trust that pays him a monthly allowance and will cover the cost of house repairs etc, ensure that within the rules of the trust he can downsize with any money returning to the trust, on his death it goes to your family. Speak to someone with expertise in this

ithoughtisawapuddycat · 21/03/2022 19:26

One of my friends has done this. They had a house that was theirs, married second husband (not father of her children) and so the house has been left to her children but her husband has a life time interest unless he remarries in which case he has to leave the property.

HomeHomeInTheRange · 21/03/2022 20:51

I would leave him a life interest in the house, and it then passes to your siblings / their offspring.

That means he gets to live in the house for the rest of his life (and you could leave him your savings to see him through) but then ultimately your house, your parents’ inheritance, stays with your relatives.

Many many men re-marry, even at a mature age, after the loss of a partner.

Is there a pension that he could be a beneficiary of?

Tough news re your illness OP, very sorry to hear that.

Original poster
ComeSailAway · 21/03/2022 21:15

Thanks for all your kind thoughts. I appreciate it.

There is a pension fund… yes I had forgottten about that! Not a fortune in it as I had to retire very early, but probably around £200k. So I guess I would trigger the IHT threshold after all.

I can't imagine he will want to live out his days in the house so I'd like him to be able to sell it.

OP posts:
HomeHomeInTheRange · 21/03/2022 21:25

@ComeSailAway your pension does form part of your estate, as far as I know. You just need to make sure that the person (s) you want to receive it is named as the beneficiary. I can do it on my policy online.

HomeHomeInTheRange · 21/03/2022 21:27

(By which I mean your pension doesn’t count towards IHT)

Original poster
ComeSailAway · 21/03/2022 21:28

HomeHomeInTheRange That's good to know! Thank you.

OP posts:
FinallyHere · 21/03/2022 21:58

Yeah. You get to nominate who gets any residual benefit of your pension through an 'expression of wishes'. Typically, the pension payout is ultimately at the discretion of the pension trustees so is not considered to be part of your estate.

Original poster
ComeSailAway · 04/04/2022 19:17

Thanks all for the advice. I have seen an "estate planning consultant" today. He has recommended I set up two LPAs and a "Living Trust".
The price is £900 for the two LPAs (covering (a) financial matters and (b) health/care); and £2500 for him to set up the living trust.

Does this seem reasonable? He assured me the price for the LPAs was less than a high street solicitor would charge so I went ahead and paid for that in the first place. I hope that wasn't foolish of me.

OP posts:
Soontobe60 · 04/04/2022 19:30

I’m so sorry that you’re having to think about this. But also, glad that you’re actually considering it!
You can leave your house to whomever you wish, with a clause that allows your DP to live there for as long as he wishes, or until such time as he may need to go into a care home, or even if he wishes to live with another person in the future. My mum did this - she did leave her house to her DH and her 4 children, as long as he did not cohabit with anyone else. The only hassle now is that her DH has recently gone into a home but doesn’t have capacity to make legal decisions regarding selling the home. We won’t be able to sell it until he dies unless it goes to the Court of Protection. If he hadn’t been named in the will as a beneficiary this would not have happened.

Soontobe60 · 04/04/2022 19:31

@ComeSailAway

Thanks all for the advice. I have seen an "estate planning consultant" today. He has recommended I set up two LPAs and a "Living Trust". The price is £900 for the two LPAs (covering (a) financial matters and (b) health/care); and £2500 for him to set up the living trust.

Does this seem reasonable? He assured me the price for the LPAs was less than a high street solicitor would charge so I went ahead and paid for that in the first place. I hope that wasn't foolish of me.

That’s a rip off for the LPAs it costs £85 for each one and is very easy to complete yourself online. I’d also hazard a guess that he may also be overcharging you for a living trust.
Soontobe60 · 04/04/2022 19:34

Oh, and there’s a great forum in wills etc where people re very knowledgeable about this sort of stuff.
forums.moneysavingexpert.com/categories/deaths-funerals-probate

cptartapp · 04/04/2022 19:34

Just did our LPA's online. Yes, around £85 each. Pretty easy.

Original poster
ComeSailAway · 04/04/2022 19:45

Yes he mentioned an additional £85 fee to register the LPAs when they are ready (this apparently goes to the government).

The £900 is to draw up the documents, witness the signatures etc.

OP posts:
cptartapp · 04/04/2022 19:50

Outrageous IMO. The documents took us about half an hour to fill in online. Printed them off. A neighbour signed them. £170 in total.

Knotaknitter · 04/04/2022 20:11

I'm sorry you find yourself in this situation OP. The solicitor will not have to draw up the documents for the LPA - everyone fills in the same form that can be filled in online and then printed. I did mine and my mother's and it was straightforward enough. A friend witnessed them, job done. Knowing what is involved I can't believe that someone is rushing you £900 for them. I would ring up and get a second quote for the living trust to see if that is also on the rich side.

Swipe left for the next trending thread