Advice with Will and ring fencing.

[AlexandraPeppernose]

I would appreciate some advice as my dh and I are tying ourselves in circles trying to get this straight before heading to the solicitors as we can't afford hours talking it through with them.

Fairly modern situation I think. I'm sorry for the essay.b

I have 3 children from previous marriage (their dad is deceased)

Current dh has no biological children and sees mine as his so wants to leave everything to them

We own a property with mortgage as joint tenants. We both have separate life insurance to pay off entire mortgage upon our death.

We have seen other members of family lose out to inheritance due to future marriage so I want to ring-fence my half of the house so only my children get it should he remarry. We would both want the other to stay in the house till death or they choose to sell, but would expect that sale to trigger my kids getting their bit. Or do we?

This is where we get confused. Do I put my half in trust or do we need to transfer to tenants in common. Also how do I stop my children from selling it when he is still living.

Basically we both want to leave whatever we have to the same 3 children. I don't want my kids to lose out to a future stepmums children and he doesn't want to end up in a bedsit If I die tomorrow.

I'd appreciate any advice from anyone who does this with their eyes closed.

Thanks so much.

You'll need to change the ownership to Tenants in Common, then leave your share to your DC & give your husband a life interest so he can have the use of the house for as long as he needs it.

@2024please has nailed it.

Wills are often a flat fee. We allow an hour for the first appointment. I can almost guarantee your solicitor will have the solution. Tell them what you want and he'll tell you how to achieve it. That's what you're paying for. 😊

Yes, the advice we were given was tenants in common and a lifetime interest in the house/value of it if they need to move. Wasn't too bad though, few hundred to get advice and be sure.

Thanks all. That's really useful. I thought that may be the case. Should of done tenants in common in the first place

BUT….Ypu need to also talk through with your kids. This could have tax implication for them, it also raises questions on who pays for building repairs, do they need building insurance for their Half etccetc

There also needs to be agreement about if partner needs to sell up before death and how that’s handled, as well as decent legal explanation as to why you’re not doing this does not equate to deprivation or assets for care homes. Also note, you need to figure out if you only have half the house how YOUR care homes fees would be covered if husband still in house.

you must get legal advice and draw up clear agreement on this including with your kids.

none of these are insurmountable…but you need to crystal clear or will leave a heartbreaking mess and arguments.

Most mortgage providers don’t like this. It means if one of you do moonlight flip they can only insists on payment of your half. They want security that you are both totally liable for repayment.

the terms won’t be so attractive if you do this.

historically people used to set up these deeds of trust as a way of protecting half the house value form care home fees. Can’t do that now as deprivation of asset , but we were always told to switch form joint tenants to tenants in common once mortgagexwas paid off and then set up trust.

I always thought that tenants in common was more to protect individual deposits.

Tbf we still have 23 yrs on our mortgage and over 20yrs till retirement so not even thinking about the care home situation yet, especially as our financial situation will be very different then. We fully intend to tweak as time goes on

We were actually actively encouraged to get a declaration of trust when we bought a couple of years ago but it felt unnecessary.

I believe that house would be disregarded for care fees if a dependant is still resident there. Ie partner, spouse, child under 18.

If you move to tenants in common and put in trust it WILL be challenge by local authority re deprivation of assets for care home fees. You would have to prove you did not set up trust to avoid carehome fee payment, and had other means to pay fees
This is why when I was at work 30 years ago the standard info we received was to set up trust, then 20 years ago we were told, and general info given out, it is a complete waste of time as a way to avoid care home fees. Council will challenge under deprivation of assets and win unless there are clear unusual circumstances - a partnership, not marriage with previous children form one parent is a reasonable assertation to ring fence for inheritence and could well be successfully ignored by local authority. A marriage, with shared children..no way unless one of children is dependant on parent.