Legal News | 17.06.21
Peace Out, Bob
Keeping the Peace
Families are wonderful, complicated things. The ‘blended family’ – defined as any household consisting of at least two families – is one of the fastest-growing types of household in the UK.
Take Bob as an example; Bob and Helen were happily married for 25 years and together they brought up their two sons. Helen then sadly died. Bob later met and married Sheila who had no children of her own.
When it comes to writing Bob’s Will, he wants to make sure that should he die first, Sheila will be sufficiently provided for, but at the same time, he wants to ensure that his sons receive a share of his estate in the future. How might Bob find this peace of mind?
Peace of Mind
The life interest trust might be the solution for Bob. Wansbroughs can help Bob by drafting his Will so that (a) Sheila can live in the family home and have access to the income arising from Bob’s assets for the remainder of her life; and (b) after Sheila’s death, the capital of Bob’s estate has been preserved so that it can be divided up between his two sons. Peace of mind achieved for Sheila because she has security and peace of mind for Bob as he can ensure that his sons benefit from his estate.
Rest in Peace
There may also be tax advantages to distributing your estate like this. Any gifts between spouses/civil partners are exempt from inheritance tax. Once you have both passed away, the estate of the second spouse to die may benefit from not only their own tax free allowance (currently £325,000), but some or all of yours as well. If the family home passes ultimately to your children, there may be even greater tax savings available.
If you are part of a blended family, and would like to benefit your children while making sure your spouse or civil partner is secure in their old age, the life interest trust Will might be just what you need.
To discuss this further, please do get in touch with us at wealth@wansbroughs.com or on 01380 733300, or speak to your usual Wansbroughs contact.
