Future Inheritance Will Be a Nightmare

[WishItWereSummer]

I’ve NC for this, and apologies in advance for the very long thread. I don’t want to drip feed so will include as much relevant information as possible, but I would like to be prepared for this event when it happens.

I have 2 DC who are young adults. I split from their father when they were 1 after years of physical and mental abuse (towards me not them), he was convicted on one occasion when I finally had the courage to go to court, and I had numerous non molestation orders with power of arrest attached.

Their paternal grandfather did the same to their paternal grandmother (which their father witnessed) and as a result he was brought up by his mum and had sporadic contact with dad over the years. His mum is an amazing woman, had a good job and worked hard to provide them both a safe and stable home – she’s a gentle soul. He however, has never left home (he’s 46), never had a proper job (part time doorman), has a drink/drug/and prescription drug problem, and has violent outbursts. Over the years he has caused untold damage to his mums house, completely disrespected her boundaries, never paid rent (despite being asked) and is generally very very unpredictable & abusive.

My DC have always had a great relationship with their DGM, and have seen/witnessed the majority of his behaviour. DGM has recently updated her will and told DC her wishes:

Her house (worth approx. 400k) – split between my DC only

Cash/assets – 30% to each DC and 40% to her son (their father)

It seems she has also stated that although the house belongs to DC, he can live there for as long he likes (lifetime interest). She has done this for a multitude of reasons as she doesn’t trust him and is scared of him. She also knows that he will blow any money he is left, on drugs (he was left 500k inheritance 15 years ago and spent it all on drugs/partying)

Now to my concerns:

I’m petrified of his reaction when he discovers he hasn’t been left the house. I can’t emphasise enough how little respect he has for anyone and anything – including his children and mother. I can say with 99% certainty he will erupt.
He has lived with his mother his entire life, completely dependant on her to house him. He has never paid a bill, genuinely, and as such I’m concerned he could challenge the will on this basis?
I’m also worried that he will do considerable damage to the property out of spite/temper and my DC would have no recourse to remove him from the property and/or get him to pay for the damage.
I guess I’d like to know how I can help the DC when this time comes, how can they be prepared for the absolute shit storm that’s going to come their way when DGM passes away?

Thanks wise ones.

The twins either
a) accept the bequest and have their deeply unpleasant father enmeshed in their lives until the day he dies. At which time they will inherit a valueless (no longer £400k) dump

Thats not how it works with property.

They would probably get the house when he dies anyway. Even if the grandmother left it to him.

Well let's hope your mil has a 400k care home bill, honest to God, this seems the best solution.

Where is the money going to come from to pay the IHT?
If DGM's estate is over £500k, and it sounds like it is, some of the cash will need to pay the tax due

Again, it's usual for the estate to pay iht. Clauses are inserted (I leave my daughter Jenny my house no 2 acacia avenue, free of taxes) so the iht normally comes out of the estate either from funds not held in real property, or from real property which is sold by the trustees and then distributed in accordance with the will. If there are not enough funds to pay iht there are options. The threshold is 500k so there would be little to pay on today's figures.

I know the estate pays but my point is, is this case, that if the house is worth c. £400k and depending on the value of the other cash/assets, some of these other cash/assets might have to pay any IHT due. This means that there is less liquid assets for the beneficiaries, in an already less than ideal situation.

@PrincessofWellies just out of interest where are you getting the £500k figure from? Is there a personal exemption of (something like) £350k plus something related to leaving the house to child or grandchild - (say) £175k?

500k is the iht threshold - for property bequeathed to a child or grandchild.

I am interested in this discussion as my daughter lives in a house rent free that is owned by us. For various reasons I want to use it for her to live in until her death. I would like to leave it to my niece and nephews plus some money to manage it, insurance etc while my daughter is alive . This is partly because my daughter won’t do a will and as it was bought with money from my family we don’t want it going to the boyfriend. My daughter will get what money remains, so she won’t need to think about sale of house which is her only security. I trust all concerned to deal with it as I wish. Value of house is about 120k I would stipulate that if she needs to go into care at any point the house could be rented for her benefit. Would this arrangement be classed as lifetime interest or right to occupy? Can I do this though a straightforward will?

@Ramblingnamechanger a solicitor could put your wishes in a will but if your DD's boyfriend has been living there long term when your daughter dies, it could present a problem.

This is not the case in my mums will.
Her Partner can remain in the house but he is responsible for all costs associated with it and if he doesn’t keep it to a reasonable standard we can take steps to remove him.
Your ex MIL can probably word her will in a way to at least try and make him behave