06 December 2019
This is often the case where a person has children with a first partner, that relationship ends; and then they form a new relationship. In which case you want to provide a fair inheritance, providing for your partner but also ensuring that your children receive a gift too.
Of particular concern is the family home. If you live with a new partner you want to ensure that they have a right to remain living in the home (either yours or a jointly owned property) for the rest of their days.
You might not want to make them a joint owner of the property. You might not want to make a Will gifting the property to them outright. That would mean your children might miss out if your partner didn’t make a Will, or changed it to remove your children, or accidently revoked it i.e. by getting re-married.
Example:
Daphne had two children, Sophie and Maddie with her husband. She has since divorced and is now in a new relationship with Donald. Daphne and Donald live together in Daphne’s house. Daphne wants to make a Will that lets Donald live in the house for the rest of his days. However, she wants to put something in writing to ensure that Sophie and Maddie eventually inherit the property.
One solution is a “Life Interest Trust Will”. Including a Trust in your Will is a way of keeping control over your house after you have passed away. Daphne can give Donald a “Life Interest” which means that he gets the benefit of the house for his lifetime. Donald can live in the property; or he can let it out and receive the rental income.
However Donald does not receive an absolute gift of the property. Instead, Property Trustees named in the Will hold the legal title. After Donald’s death the Trustees will transfer the ownership of the property to Sophie and Maddie.
This achieves a sensible balance. Sophie and Maddie know that their inheritance is “locked down” and they will receive it in due course. Donald has a home for the rest of his days.
It is important to remember that the Life Interest Trust only becomes effective on your death (because it is part of your Will).
If you would like assistance in making a Will you can contact our friendly and approachable Wills, Trust and Probate lawyers based at our Bournemouth and Christchurch offices:
Please note, this is not legal advice. It is intended to provide information of general interest about current legal issues.
