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Original poster

Should I include substantial gifts to my children in my will?

11 replies

WaywardWill · 26/04/2023 08:20

Making wills right now. Very simple: married to DH & 3 kids.

Solicitor is suggesting mirror will leavig everything to each other. I have no reason to distrust DH - but legally I know that that has the potential to disinherit the children if I die first & then DH remarries and dies.

I am considering adding a clause giving kids substantial gifts that would add up to the value of a second property we have (i.e. not so much that it would pauper DH - assuming no radical changes in circs - but enough for them each to have a house deposit). The solicitor seems anxious on my behalf that it is not tax efficient and may create problems for DH e.g. needing to sell things to generate the cash.

DH doesn’t want this clause himself - because he says he wants me to have control if he dies first - but is fine with me having it or with me expressing a non-binding wish that he gifts money to the kids if I die first.

WWYD?

Am I being paranoid or responsible to be considering this?

OP posts:
prh47bridge · 26/04/2023 08:30

If you own the properties as tenants in common, you can leave your husband a life interest in the properties with then passing to your children on his death. If you own them as joint tenants, you can sever the joint tenancy and do this. That way your children are guaranteed to get your share of the properties.

BirdIsland · 26/04/2023 08:32

As PP says, there is an easy way to deal with this concern - a life interest for the survivor of you. I would suggest you might need a better solicitor if they haven't suggested this option!

autienotnaught · 26/04/2023 08:34

My mother left her 50% of her estate (cash/bonds) to her children/grandchildren. (Except the house which she left to my father) so my father lives off his 50% and has the house. No inheritance tax though.

TheaBrandt · 26/04/2023 08:35

Give him a life interest in your half of the house then he is protected and can live there etc but on his death your half goes to the children. He cannot will it away and it’s not available to any new spouse. If you leave large chunks to children on first death you lose your spousal iht exemption and risk him making a claim against your estate if he is not reasonably provided for.

WheresTheForum · 26/04/2023 08:39

I also agree with PPs. This is the easiest way to do this.

euff · 26/04/2023 08:48

What don't think this is paranoia. You hear so many stories of children not inheriting anything because a parent passed and the remaining one remarried. It does sound like it happens because it's not thought about and we don't talk about these things. If you are able to talk through and trust him things might be different.

We own ours as tenants in common. I would do what pp's suggested.

Original poster
WaywardWill · 26/04/2023 12:31

DH is strongly against ‘life interest in the house’ type set ups, because they would place limitations if the survivor wanted to sell.

We are in our mid 30s - so if one of us died - the survivor most likely would end up selling at some point & downsizing. DH comes from a country where children get a share of property by default – and it makes sales ridiculously complicated with the number of signatures needed.

Cash gifts at least mean that family members don’t remain financially bound to each other. (eg kids get cash; surviving gets full discretion in whatever life they choose to build onwards for themselves).

OP posts:
FictionalCharacter · 26/04/2023 12:36

WaywardWill · 26/04/2023 12:31

DH is strongly against ‘life interest in the house’ type set ups, because they would place limitations if the survivor wanted to sell.

We are in our mid 30s - so if one of us died - the survivor most likely would end up selling at some point & downsizing. DH comes from a country where children get a share of property by default – and it makes sales ridiculously complicated with the number of signatures needed.

Cash gifts at least mean that family members don’t remain financially bound to each other. (eg kids get cash; surviving gets full discretion in whatever life they choose to build onwards for themselves).

He’s not correct. We have that setup and it does not place limitations if the survivor wants to sell. Talk to a solicitor not your husband, who clearly doesn’t understand how it works in the uk.

TheaBrandt · 26/04/2023 12:45

The Will can be drafted so the survivor can sell but trust owns half of new property and survivor can access capital.

They are a pain if the survivor wants to enter equity release though as the trust owns half the house and a mortgagee won’t like that. So they are not for everyone but the disadvantages are fewer than the gifting on first death option

NoSquirrels · 26/04/2023 12:52

DH is strongly against ‘life interest in the house’ type set ups, because they would place limitations if the survivor wanted to sell.

No, he’s not correct. You can have it drawn up so that on sale or death the 50% is released to the DC. So he’s free to live in it or to sell it (without their signatures/say-so) as long as he then releases the cash to them on sale. Or, as a PP says you can have it in trust so that the trust owns 50% of whatever new property he buys etc. It shouldn’t mean a tie that penalises him to his detriment.

prh47bridge · 26/04/2023 13:02

You need to get your solicitor to explain it to him. If drawn up correctly they don't place any limitations on the survivor moving and/or downsizing.

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