Wills and Trusts
Discussion
Hi,
I'm after some advice on wills and trusts
Background is as follows. My parents are 90 and mid 80's with worsening health and have a reasonable estate based on their own house and a number of BTL's. I would say its prob in the region of £3-4m. I'm the only child and am married with 2 kids. My parents want to ensure, that when they die, their money is protected and should I end up getting divorced or I die, it will go only to the grandkids. In essence, they want me to benefit from their estate but ultimately for it to be passed to my kids. I will continue renting the houses as I also have some BTL's and this would be their preference
Key question, is what is the best way to protect their assets in the way I've mentioned above. I assume a trust would probably be the best approach but given I / they have very little experience in this, I want to make sure when they engage a solicitor the trust is structured in the best way to give them what they want. Appreciate any thoughts or opinions
Thanks
I'm after some advice on wills and trusts
Background is as follows. My parents are 90 and mid 80's with worsening health and have a reasonable estate based on their own house and a number of BTL's. I would say its prob in the region of £3-4m. I'm the only child and am married with 2 kids. My parents want to ensure, that when they die, their money is protected and should I end up getting divorced or I die, it will go only to the grandkids. In essence, they want me to benefit from their estate but ultimately for it to be passed to my kids. I will continue renting the houses as I also have some BTL's and this would be their preference
Key question, is what is the best way to protect their assets in the way I've mentioned above. I assume a trust would probably be the best approach but given I / they have very little experience in this, I want to make sure when they engage a solicitor the trust is structured in the best way to give them what they want. Appreciate any thoughts or opinions
Thanks
dogz said:
Hi,
I'm after some advice on wills and trusts
Background is as follows. My parents are 90 and mid 80's with worsening health and have a reasonable estate based on their own house and a number of BTL's. I would say its prob in the region of £3-4m. I'm the only child and am married with 2 kids. My parents want to ensure, that when they die, their money is protected and should I end up getting divorced or I die, it will go only to the grandkids. In essence, they want me to benefit from their estate but ultimately for it to be passed to my kids. I will continue renting the houses as I also have some BTL's and this would be their preference
Key question, is what is the best way to protect their assets in the way I've mentioned above. I assume a trust would probably be the best approach but given I / they have very little experience in this, I want to make sure when they engage a solicitor the trust is structured in the best way to give them what they want. Appreciate any thoughts or opinions
Thanks
I think you are probably too late in the day, unless your parents are going to live to 100 and 95 respectively. I'm after some advice on wills and trusts
Background is as follows. My parents are 90 and mid 80's with worsening health and have a reasonable estate based on their own house and a number of BTL's. I would say its prob in the region of £3-4m. I'm the only child and am married with 2 kids. My parents want to ensure, that when they die, their money is protected and should I end up getting divorced or I die, it will go only to the grandkids. In essence, they want me to benefit from their estate but ultimately for it to be passed to my kids. I will continue renting the houses as I also have some BTL's and this would be their preference
Key question, is what is the best way to protect their assets in the way I've mentioned above. I assume a trust would probably be the best approach but given I / they have very little experience in this, I want to make sure when they engage a solicitor the trust is structured in the best way to give them what they want. Appreciate any thoughts or opinions
Thanks
Will trusts are common and that's probably the solution you require. Obviously it's important to ensure that the trust document as written will achieve exactly what you and your parents want. Just be aware that there are tax implications with trusts, and these can vary according to the type of trust.
Another thing to consider is whether or not the trust is only created on the death of the second parent.
I'd suggest finding a solicitor who specialises in wills and trusts to discuss your options. This is a useful site for that: https://www.step.org/about-step/public
Another thing to consider is whether or not the trust is only created on the death of the second parent.
I'd suggest finding a solicitor who specialises in wills and trusts to discuss your options. This is a useful site for that: https://www.step.org/about-step/public
YouWhatAgain said:
I think you are probably too late in the day, unless your parents are going to live to 100 and 95 respectively.
Why? He's not asking about IHT avoidance. He's wanting to protect his inheritance net of IHT from his wife should they split, to ensure it stays entirely with him or his kids. How fussed are you about getting it all?
Easier more harmonious option may be for them to leave some directly to grandkids with you managing it for their benefit.
Eg they own the buy to lets, the income from which you can legitimately use to pay for things you’d probably pick up if you owned them (Holidays, School Trips, Uni, cars etc).
That drops the cash a level down the family tree
Avoiding potential tax issues if you die & your current Mrs running off with it . (If she did leave you, you could prob use kids money to house them too).
She probably would not be able to contest your folks will in the same way she might yours if you passed too
Partial Assets directly to kids is prob an easier pill for your current Mrs to swallow than learning your folks don’t like/trust her & you were complicit in it.
Easier more harmonious option may be for them to leave some directly to grandkids with you managing it for their benefit.
Eg they own the buy to lets, the income from which you can legitimately use to pay for things you’d probably pick up if you owned them (Holidays, School Trips, Uni, cars etc).
That drops the cash a level down the family tree
Avoiding potential tax issues if you die & your current Mrs running off with it . (If she did leave you, you could prob use kids money to house them too).
She probably would not be able to contest your folks will in the same way she might yours if you passed too
Partial Assets directly to kids is prob an easier pill for your current Mrs to swallow than learning your folks don’t like/trust her & you were complicit in it.
AndyAudi said:
How fussed are you about getting it all?
Easier more harmonious option may be for them to leave some directly to grandkids with you managing it for their benefit.
Eg they own the buy to lets, the income from which you can legitimately use to pay for things you d probably pick up if you owned them (Holidays, School Trips, Uni, cars etc).
That drops the cash a level down the family tree
Avoiding potential tax issues if you die & your current Mrs running off with it . (If she did leave you, you could prob use kids money to house them too).
She probably would not be able to contest your folks will in the same way she might yours if you passed too
Partial Assets directly to kids is prob an easier pill for your current Mrs to swallow than learning your folks don t like/trust her & you were complicit in it.
There's the solution. Job jobbed, foolproof and the ex wife to be can't do anything about it. Easier more harmonious option may be for them to leave some directly to grandkids with you managing it for their benefit.
Eg they own the buy to lets, the income from which you can legitimately use to pay for things you d probably pick up if you owned them (Holidays, School Trips, Uni, cars etc).
That drops the cash a level down the family tree
Avoiding potential tax issues if you die & your current Mrs running off with it . (If she did leave you, you could prob use kids money to house them too).
She probably would not be able to contest your folks will in the same way she might yours if you passed too
Partial Assets directly to kids is prob an easier pill for your current Mrs to swallow than learning your folks don t like/trust her & you were complicit in it.
AndyAudi said:
Partial Assets directly to kids is prob an easier pill for your current Mrs to swallow than learning your folks don t like/trust her & you were complicit in it.
Very much this.Might be reading something in to nothing, but the way the question was framed suggests the solution may well create the problem.
Trusts can get complicated and expensive and really need to be fully nailed down by a competent professional.
If the "kids" are over 18 they could inherit directly. However they would still be subject to a potential divorce. If your parents aren't concerened about that then leaving you all 1/3 each should reduce their concern by 2/3.
Creating a trust prior to death could well trigger an immediate tax headache.
If the "kids" are over 18 they could inherit directly. However they would still be subject to a potential divorce. If your parents aren't concerened about that then leaving you all 1/3 each should reduce their concern by 2/3.
Creating a trust prior to death could well trigger an immediate tax headache.
dogz said:
My parents want to ensure, that when they die,
a) their money is protected, and
b) should I end up getting divorced or I die, it will go only to the grandkids.
In essence, they want me to benefit from their estate but ultimately for it to be passed to my kids.
Looks like two separate questions to me, with Q1 being all about IHT. Yes, it's getting rather late.a) their money is protected, and
b) should I end up getting divorced or I die, it will go only to the grandkids.
In essence, they want me to benefit from their estate but ultimately for it to be passed to my kids.
As regards advice, Nicetobenice is bang on target. Pay a professional.
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