Your Will Matters » Trusts

Remarriage and inheritance: who gets my money?

Bill Ryan — Tue, 21 Jul 2009 13:20:34 +0000

If you have remarried you may think that one way or another your estate (i.e. your property and money) will go to your children.

You may be wrong!

Look at this example:

Alan & Betty Smith have 3 grown up children when they divorce. The money and assets are then split equally so that they each have £300,000.

Betty then marries Charles and they buy a house together. Betty puts in £250,000 to match Charles’ contribution. As a married couple they buy in the normal way, as joint tenants.

Of her remaining £50,000, Betty put £30,000 into a joint savings account. The remainder is put into sole bank and saving accounts in Betty’s name.

With or without a Will the maximum that Betty’s 3 children could inherit is £20,000 because the jointly owned house and savings account (with a combined value of £330,000) is already owned by Charles. That money and that share in the house does not and cannot form part of any inheritance.

What can Betty do to ensure that her children can inherit her money and assets?

Firstly, sever the joint tenancy to become tenants-in-common of the house. This means that they would own 50% each.

But Betty doesn’t want Charles to be forced out of the house!

That’s easy, if Betty sets up a Life Interest Trust in her Will it can allow Charles the right to use the house (or it’s value) until he dies and then the half share in the house passes to Betty’s children.

What about the joint savings account?

If money is put into a sole savings account in Betty’s name that can pass directly to the children or it could be put into the Life Interest Trust. The interest accrued would be paid to Charles during his life. On his death the money would be distributed to the children

So by understanding the problem and acting on it a solution can be found quite easily to satisfy all sides.

If you would like know more about how to avoid this problem or to arrange a free no obligation consultation you can call us for free on 0800 878 6565 or 07942 959599 or use our contact page and we will call you back within one working day.

The home visit Will service is available in Berkshire, Dorset, Gloucestershire, Hampshire, Oxfordshire, Somerset and Wiltshire.Similar Posts:

Honey I’m disinheriting the kids

Bill Ryan — Thu, 02 Jul 2009 12:48:26 +0000

What is sometime called Second Marriage Syndrome is an inelegant term for a situation where a parent remarries and goes on to own all or most property jointly. This can have serious consequences for the children.

If that parent dies before the new spouse does, with or without a will, jointly owned property stays with the new spouse because s/he owns it already.

It is something that can easily happen and does happen. But it can be avoided.

To most people the idea that the wealth and assets that have been built up over their life ending up in the pocket of a new spouse, and his or her children, is just unacceptable.

One way to avoid this problem is to ensure any new ‘marital property’ is owned as tenants-in-common and e.g. the part owned by the parent is put into a Life Interest Will Trust. This will leave the surviving spouse with the full use of the property, but on his/her death it then passes to the children.

So nobody loses out this way.

If you would like to talk about avoiding this problem or want to make an appointment to arrange a visit please call William Ryan on 01225 582 582 or 07942 95 95 99 or use our contact page and you will be called back.Similar Posts:

Care Home costs now £35,000 per year for elderly

Bill Ryan — Wed, 08 Apr 2009 14:43:50 +0000

The UK average annual fee for a single room in a nursing home, it is £35,100 according to the Laing and Buisson (Care of Elderly People) UK Market Survey 2008.

As of April 2009 (which allows for the increased threshold levels) your assets over £22,000 are liable to be ‘used’ to pay Care Home Fees that may accrue. You remain liable for a partial payment until the level of your assets falls below £14,000.

If you plan correctly you can greatly reduce your liability to pay Care Home fees. For this to work you and your spouse or civil partner need to put a suitable will trust in place whilst you both are healthy. This is really something everyone should consider.

If you would like talk to someone or to arrange a no obligation visit please call William Ryan on FREEPHONE 0800 878 6565 or 07942 959599 or use our contact page.

Affordable peace of mind for people from all walks of life and for those not wanting the cost of a high street solicitor.

The home visit Will service is available in Berkshire, Dorset, Gloucestershire, Hampshire, Oxfordshire, Somerset and Wiltshire.Similar Posts:

Bargain basement DIY Will kit found in Corsham

Bill Ryan — Fri, 27 Mar 2009 17:18:25 +0000

I have just seen the cheapest version of a DIY Will kit yet. I was posting a letter in the Box Post Office in Corsham (which in Wiltshire and just a few miles from Bath for those who don’t know). I noticed a poster advertising a DIY Will kit for just £9.99. Well that beats the one for £15 in WH Smiths I suppose.

For many people the appeal of this cheap route to making a Will may seem like an excellent idea but if you don’t get it right the results could be disastrous.

Now I am not saying it can’t be done adequately using the DIY route. But on the other hand most Wills are found to be invalid through procedural defects such as problems with the signing procedure or through improper amendments to the Will. This sort of fault would not happen if properly supervised by a professional.

Also, without the proper fact finding and advice that you would receive by using a professional, there is real potential for missing out on important benefits e.g. using the right type of Will Trust to protect your property. In addition there may be ways of saving Care Home fees, Inheritance Tax or even ensuring your children can still inherit if you die and your partner remarries. There are many issues that can be of real importance but do you understand what they are?

And what happens if there is a mistake? Your loved ones will find out after you have died and it would be left to them to ‘pick up the pieces’. There is no Professional Indemnity insurance to fall back on either.

Is making your Will really the sort of thing you want to take a gamble with?

If you would like further advice or to arrange a home visit you can call free on 0800 878 6565 or 07942 959599 or use the contact page.

Affordable peace of mind for people from all walks of life and for those not wanting the cost of a high street solicitor.

The home visit Will service is available in Berkshire, Dorset, Gloucestershire, Hampshire, Oxfordshire, Somerset and Wiltshire.Similar Posts:

Jade Goody Estate Planner

Bill Ryan — Tue, 24 Mar 2009 14:57:42 +0000

The recent sad death of a young mother called Jade Goody from cancer, made plenty of headlines. It has raised many issues including cervical smear testing regimes and the ethics of dying in the public eye.

The fact that Jade knew she would die in a short time made her deal with a number of issues many of us never get around to doing. She knew she had to make a will. She knew she had to make provisions for her children and she wanted to make sure that they would have the maximum benefit from her assets; it is reported she put a £4 million trust fund in place for them.

So she he planned her estate in good time and died knowing she had done her very best in this important respect. Yet another thing for you to think about.

If you would like some advice or want to arrange a home visit please contact Bill Ryan on 0800 878 6565 or on 07942 959599.

The home visit Will service is available in Berkshire, Dorset, Gloucestershire, Hampshire, Oxfordshire, Somerset and Wiltshire.
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Do you have a disabled child?

Bill Ryan — Mon, 16 Feb 2009 12:48:17 +0000

Any parent with a disabled child will be concerned about providing for that child’s special needs after his or her death.

By making a Disabled Discretionary Trust you appoint someone (i.e. one or more trustees) to make financial decisions regarding the inheritance for your disabled child. There must be more than one potential beneficiary or the trust cannot be discretionary in nature. Your wishes are expressed through a ‘letter of wishes’ which gives the trustees guidance, but is not binding. Yet again if the letter of wishes was binding there would be no discretion and therefore no discretionary trust.

Most importantly it is designed to conform with current legislation to ensure it does not affect your disabled child’s entitlement to benefits.

It is of prime importance that the trust is set-up correctly or it may fail and deprive your child of the full benefit of the inheritance you had planned for.

If you would like to arrange a consultation please call Bill Ryan on FREEPHONE 0800 878 6565 or 07942 959599 or use the contact page and I will call you back within one working day.

The home visit Will service is available in Berkshire, Dorset, Gloucestershire, Hampshire, Oxfordshire, Somerset and Wiltshire.Similar Posts: