Can I protect inheritance used to pay off our mortgage?

[kittenkat5]

I have been lucky enough to be given an inheritance which means I will be able to pay off our mortgage. Me and my dh currently split the monthly payments in half. Is there anything I can get written up to say I have put £x into the mortgage should anything happen to us?

Yes, a deed of trust from your solicitor.

Be cautious though, mine caused long term resentment.

And do it as a percentage share, not a monetary amount that will shrink with inflation and not participate in any future appreciation.

If it does threaten to cause resentment and you have a good interest rate on your mortgage, might make more sense to put it into a separate account and invest in broad global funds. Higher return, less of a cluster risk when all your money is invested in the same asset class.

I know you say DH but are you actually married? If so, the inheritance could be considered a marital asset if you use it for a shared purpose. Check this with your solicitor.

What are you needing to protect it from? If that is your mindset is it better not paying it off, splitting the house equity and using your inheritance to go it alone?

What is the worry?

I ask as i have just paid off the remaining balance of our mortgage with my inheritance. I didnt even think of needing to protect it. Should i have?

“Should anything happen to us?” Well, you are going to die but presumably you know that so what is the type of circumstance that you’re worried about? Divorce?

See a solicitor

If you own your house as Tenants In Common, rather than joint tenants, you can specify the percentage of the house you own. If you own as joint Tenants you can alter this to TiC.

This will protect you in terms of a Will - you can leave your share direct to your Dc, for example,

In a divorce it might offer protection but most things would be up for grabs if you have used them for shared purposes (money in a joint account , put into the house as an extension or mortgage payoff etc) because the starting point is 50/50 and each partner having enough to be self sufficient where possible.

You can own the percentage that you have paid for, see a solicitor to do it all properly.

You are being sensible, nobody knows what will happen in the future and half the divorcees out there probably thought they would be married forever.

You’re married, it’s too late, all assets are shared.

p.s. I’d be extremely concerned if my husband wanted to effectively get me to sign a pre-nup at any time, but especially when already married.

You’re married, it’s too late, all assets are shared.

Not necessarily. If OP keeps the inheritance in her name only and doesn't use any of it for joint purposes, it can remain hers alone. She should take legal advice on this if she wants to keep it separate to marital assets.

I invested my inheritance from my Mum. DH will likely inherit from his Mum in next few years. Up to him what he does with it. I've also inherited a little from an Aunt that I have to youngest ds towards his deposit.

Yes via a solicitor. My friend did this because rightly she wanted it for all her DCs to benefit.