How a married couple with children from a previous relationship ensured their children didn’t miss out on their inheritance
Mr and Mrs F have been made aware by family members that it is very easy for children to miss out on their inheritance when a parent has remarried.
Mr and Mrs F wanted to ensure they made provision for the children from their previous relationships in their wills.
Concerned own children lose out
They were concerned that their share in their property should pass to their own chosen beneficiaries, and that if a change was made to their will after their death, that their own children or other chosen beneficiaries should not lose out.
They wanted to ensure that if their spouse remarried or started a new family after their death, that their own children still received their inheritance.
Control of property after partner passes
Mr and Mrs F were also made aware that if their property is jointly owned, it will automatically pass to the surviving joint owner. If this happens, they will not be able to control what happens to that property after their partner passes away, or even remarries.
Benefits of Remarriage Trusts
Having consulted a Will Power adviser who explored Mr and Mrs F’s family circumstances in-depth, they were advised that they should set up Remarriage Trusts in their wills to receive each of their assets, so that come what may, only their chosen heirs benefit.
This was put in place without compromising the position of the survivor, which means each has given their spouse the right to remain in the property for life, until their remarriage, they cohabit with another partner, or other conditions they specified.
Property registered as Tenants-in-Common
To enable Mr and Mrs F to guarantee their share in the property for their chosen beneficiaries, they set up a Trust in their will involving their property which gives a share to their own children, but states that their spouse may live in that property for life (or can move and the same will apply to the new property). Only when the property is finally sold do their beneficiaries get their share.
To do this, Mr and Mrs F changed the way in which their property was registered, as their property was jointly owned, so it would automatically pass in its entirety to the surviving partner. Will Power arranged a Severance of Joint Ownership so that Mr and Mrs F became Tenants-in-Common. This doesn’t affect the ownership of the property while Mr and Mrs F are both alive, but it means that each have a share in the property which they have left in their Wills to their own chosen beneficiaries.
The Will Power expert advice cost nothing and Mr and Mrs F paid only for the preparation of the Trust. Mr and Mrs F now have peace of mind that their children from a previous relationship won’t miss out on their inheritance.
“Our Will Power consultant was excellent. He took the time and showed great patience in understanding our concerns, then recommended a solution which is best for us.”
About Will Power
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You can be sure that once we have visited and examined your family’s situation, we will recommend the most appropriate wealth and care fee protection services for you and your family.
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