This is a bold statement to make but there are two good examples I can cite.

Picture two elderly parents who own their property as joint tenants.  When one dies the survivor will be the sole owner of the property.  If the surviving parent goes into care then the value of the property, save the exemption allowance of £14,000, can be taken into account to pay the fees.

A second example is when a parent remarries and buys a property jointly with their new spouse.  If your parent dies first the property is then solely owned by the surviving spouse (step-parent).

So in both cases the fact of joint tenancy brings about a less favourable postion for the potentail family beneficiaries than can be achieved with proper planning.

The simple answer is to sever the tenancy to make the parents tenants-in-common. Then make a Will including a life-interest trust which can leave the surving spouse the full use of the property during their lifetime but allows that shsre to go to the benficiaries after death.  This is a good result all around and simple enough to arrange.

If you would like to find out more, make a Will or if you want to arrange a visit please call Bill Ryan on 01225 582 582 or 07942 95 95 99. Alternatively use the contact page and you will be called back shortly.

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

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.

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.