How have people dealt with inheritance?

[timelord92]

ANOther thread on here got me thinking about my own situation and what we’d do as a couple.

My DH has a house solely in his name which he sold so we could buy our house together as joint tenents (I didn’t own any property). He has two children from a previous relationship and we now have 1 child together.

On the other thread, a few people said that their share would go just to their child and the husbands share would be split between all of the children.

Before I saw that thread I assumed that everyone just split for all the children 50/50. I can understand their reasoning as the children have their own mother who will provide inheritence for them as well. However, what happens, such as in our situation, that the mother doesn’t have any assets because she is renting a council house and doesn’t own her own house. Our child would be getting a lot more than her siblings.

Then there could potentially be the issue of them having no relationship with each other because of money.

What have others done in similar situations? Would most people just split it 50/50?

In your case it might just be better to split three ways. It sounds like the assets were pre your relationship. And depending on the age of the other two he could have an insurance policy for you and his ex to provide for the upbringing of his children.

I'd look at how it's all worded, if he were to die first when would his older children get their inheritance. As you don't want to be forced to sell, and he will want to insure you can't disinherit them. I know it sounds clinical but it's best sorted now then forgotten about unless needed.

Additional life insurance to ensure all dependents are provided for. Especially important if one of you wants to remain in the property, as the children would be left without a parent and maintenance.

Definitely split equally between all his three children. I can't believe you even have to ask!

I think in your situation it would be best to split things three ways, for now at least. It might be different in the future, say if the DSC's mum inherits herself.

But for now the assets you have are mostly your DH's, and he has 3 children.

You also need to consider each other. You can't leave a house to children while the other of you is still alive. The surviving spouse needs somewhere to live. You can leave each other an interest in possession in the house, allowing them to stay there for the rest of their life, then is passes to the children.

It depends..your child is likely to be much younger than his other two and will need more in case of his or yours sudden death..that should be taken into account probably in a form of life insurance that will go to the surviving suppose NOT the children..house- again you need to be able to live in it and bring the child up so that needs to be taken into account..

If you both die at the same time when ALL children are adults(amend the will then) split 3 ways..

In our case if I die my assets go to DH as our child is very young. He has a young adult DD but I trust him to prioritise correctly. If he dies he made provisions for his DD in his will but I get the majority..He trusts me to help her out with university and house deposit which I agreed to do.

When both of them are grown and in a scenario of both of us dying at the same time I will want my share to go to DS and DHs share will be split between both of his children.

Definitely split three ways. Otherwise you cause resentment between the siblings. Especially since they (as it currently stands) wouldn’t inherit anything from their mum.

I have 2 DS and a DSD. I'm a widow and my assets are split equally. My DSD has a DM but she hasn't anything to leave. It's important to all three of them that they are treated as equal siblings. I find it very touching.

If you are joint tenants and one of you passes away, the surviving partner will get 100% of the property, regardless of what any Will says.

Therefore, if you outlive your OH you will get 100% of the property to do with or leave to as you wish and visa Versa.

There is another way you can own a property and that is as tenants in common. This way you both own a percentage of the property, for example, 50/50 70/30 99/1 and when one of you passes away their half goes into their estate and gets held in trust, until the survivor passes away. That way the beneficiaries wont be able to sell the property until both parties have died.

However to change ownership type from joint tenants to tenants in common requires a solicitor and a good discussion with your OH on how you both feel about the inheritance situation.

Although your OH has put down a large deposit you also have to consider that you will be contributing to the mortgage and sustaining it?

My advice would be talk to your OH about it and proceed with something you’re both happy with. It’s a choice only you and him can make, but don’t down play your role of keeping the mortgage and bills paid! That is important!

House gets split between all children.

My own assets and savings will go to my own children and DH's assets and savings will split between all children. DH's daughter has her mum and other side of the family to inherit from as well.

My friend who has two Young DDs and three teen step kids also has the same views.

I think a lot depends on what everyone brings to the table and what your long term situation will be.

It is unlikely that my DP and I will have any joint children together and unless we both make a decision to sell our respective properties and buy a place together at this stage my view is that his estate passes to his Dc and mine will do the same.

If our financial situation becomes more entwined then I can see us agreeing to be tenants in common with the split directly proportionate to the capital being put in. The proceeds only going into trust / for sale when both of us are no longer here.

I care for his DC and he cares for mine. But I have zero intention at this point of leaving any of my estate to his DC. And I wouldn’t expect him to leave anything to either myself or my DC.

But these are thorny and difficult conversations that I would have before making a decision to buy a property or marry etc, with full legal advice. The subject of money is painful and I would want full agreements on how to handle this upfront

What if the step children's mother comes into money somehow, will she include your child in her will? It's tough but your children are in different situations.
I would go for the first option personally and leave my share to my child and have his split between all of his children, that's the only fair way to do it and let the cards fall as they will.