Is there a fair way to split this money or is it going to cause a fall out?

[Sourwitch]

A couple get together in 2000, let’s call them Harry & Sally and they got married (both in their early 70’s now)

Harry moved in to Sallys house

Harry has two adult daughters from a previous relationship and Sally has two adult sons.

Grandchildren on both sides.

Both worked until about 2012 and took early retirement.

In about 2012, Harry came in to some money (inheritance) that was worth more than the value of Sallys house, say £150,000 and they used that money to upgrade the house (new kitchen, bathroom and roof) buy a brand new car each, go on expensive holidays, such as the Caribbean several times, cruises, Las Vegas, Dubai and staying in expensive hotels and basically enjoining their retirement and spending the money he (they) came in to. It enabled them to take early retirement too.

There is no capital left now as it’s been spent over the years on the above.

If they were doing their wills, should the house go to Sally’s sons and nothing for Harry’s daughters, because the house was hers to begin with and only in her name and she’d paid off a lot of the mortgage before they met.

Or should it be split between both Harry and Sallys adult children, because Harry brought more money in to the relationship than Sally, but because it wasn’t in bricks and motor it was all spent on their joint pleasure. Sally absolutely benefited from the lump sum and the hosue was upgraded.

I think the house will be earmarked for Sallys children, however I think Harry’s children will have something to say about it. I can see a family feud brewing…..

(I’m none of the above)

What would you suggest is the solution?

Who will take this to court? Harry's children because they don't have a share of the inherited house, despite their dad's money paying for improvements and increasing the value, or Sally's children because Harry's children do share in an inheritance that they see as totally theirs because it was their family home? Who would be the most litigious?

There’s nothing more likely to make people fall out than money! And fighting over inheritance.

He doesn’t own 50 %.

on divorce, all assets are put into a pot, regardless of who owns them. That pot is then split according to the divorce settlement.

if you die, what’s yours is yours, and is distributed according to your will.

so for example, I’m in a similar situation to o/p. Dh moved into my house. It’s in my sole name, and I’ve always been careful not to accept any money from him. I pay the mortgage, repairs, bills etc.

dh has just inherited a decent sum. So if we divorced, my house, his inheritance, all get thrown into the pot and divided.

if he dies, his inheritance is held in his name, so will go to whoever he wills it to. My house will go to who I leave it to.

as it stands, dh’s assets will be split between his children. So they will get anything left of the inheritance. My children will get my house, with dh being able to live there til he dies or remarries.

if he uses some of inheritance say to pay for an extension to my house, then that sum will be returned to him if I die, and everything else to my children. I may consider doing it as a percentage, but currently that’s moot.

in o/p’s case it sounds like he’s contributed to the value of the house so I agree it should be split. At least the inheritance should be returned to his estate, with the rest going to o/p’s children.

If I was Sally or Harry I would split it between the four kids

Split seems fair

Four ways surely is fairest , do all 4 see themselves as harry and Sally’s kids? , what about harry snd Sally's ex’s are they passing on anything to either side ?

the only way id make it unequal is if one set of kids were getting inheritance from somewhere else or if there was big difference in the kids income , ie one lot had their own homes could afford kids in private educstion compared to the and the others were on UC

most important thing about wills is to make everyone aware so there no nasty surprises

but who ever survives the longest can remarry and complicate things more 😂

Thing is court can cost £50k plus.

depending on the value of the house they may get more if they agree to split it rather than give it to solicitors.

They should put the house in joint names with each owning half, then each leave their half of the house to their own children and grandchildren, with the surviving partner having the right to remain living there for life. They have been together a long time so I think all assets should be considered joint irrespective of who contributed what many years ago.

All property would pass to the surviving spouse when the first one died if there was no will, so in that case the longest surviving spouse would decide who inherited, which could be pretty unfair (assuming English law).

Half the house will be his legally I suspect / leaving in trust means the house doesn’t have to be sold till the survivor is dead

it will get very messy if the will suggests it’s all her house to give away

Another for equal to all four kids. That goes for any savings or pensions held by either parent too. Harry shouldn't become homeless if Sally dies first. Sally can leave her half to her kids so they don't miss out if Harry remarries or needs care.

I think after 25 years everyone should be fine with a 50/50 split.

I would say equal split across the four kids.

or spend it all as fast as poss and leave nothing 😂

Hear hear. I understand why children of divorced or widowed elderly parents are angry at the idea of some gold digger marrying their parent for the inheritance, but this is a long marriage where assets have been shared for decades.

I think thats far too complicated to work out. Better to accept the fact that H and S were adults, spent their money how they wish and therefore whatever is left should go to all kids equally.

I disagree with an equal split Sally probably worked hard to get a home to leave to her children however, Harrys children should get the cost of the improvements and the difference in the appreciation of the house price after the improvements.

This is the fairest way. It also avoids the scenario where one partner dies first, leaves house to spouse on the understanding that it will be split equally between all children, and the surviving partner needs extensive/expensive care and the house is sold and no one gets anything. Not suggesting that people should try to get out of paying for care, but if Harry's children see 'their' inheritance going on care fees for their deceased father's wife (do they see her as a 'stepmum' figure - how old were they when Harry met Sally?) they might be even more upset/cross.

They could contest it and one of the kids has form for this as they’ve done it before and caused a lot of trouble. I can see why they would given the circumstances

If I were Harry, I think I'd also have passed on some of my inheritance directly to my children at the point I got it, rather than spending it all, but that's done now!

‘No shit Sherlock’ christ OP (or Sallys DIL?) has her knickers in a twist over this!!

Fairest is the house is split between all 4 kids equally - Sally has enjoyed 75k of Harry’s inheritance money so Harry’s DC should get 75k of Sallys inheritance money. 👏

I think it also partly depends on what happened to Sally's husband. If the house was originally his and he died leaving it all to Sally then, morally, I think that her dc should have a greater share because that is partly their Dad's inheritance. I would then give half of the value (Dad's Half) to be divided between her children. The other half (Sally's half) split between the four children to recognise Harry's contribution to the house and lifestyle.

If instead the house was her half from a divorce and their Dad has disappeared off with Flossy the dog walker then it is all hers to dispose of freely. Probably split it four ways. Perhaps move the house into tennats in common so the split is clearer in advance and give the partner a lifetime interest to stay in the house until they die/ remarry. I think they need to be careful in the Wills to explain in detail their reasoning.

Equal split here for sure unless there’s life assurance or other savings to compensate

I would say the house goes into both couples names as tenants in common and each leaves their half to their own children with a life time interest for the surviving spouse.

It would have been better if they had done this when Harry came into money as if he were buying in and Sally were releasing equity to enable her to retire. This seems fair given the time the couple have been together and that Harry brought a similar amount to the marriage.

I agree and nothing to say they child who has done well not might need money down the line, become unable to work etc.

It’s a difficult one - is Sally divorced or widowed as if a previous partner paid for half the house that would impact things. If Harry had not paid towards things I would say it is just Sally’s but the finances have now been mingled and the house is no doubt worth more because of the improvements so Harry definitely owns a stake in the house.

Will Harry's children inherit from their Mum? If so maybe a 1/3 to his boys 2/3 to the girls would be fairest. This is ultimately all Harry's fault for being a thoughtless arse.