wiggydiggy
Guru
Its also Free Wills Month in March, if your over 55 and without a will you can get one drawn up with a solicitor for free,
Writing a will does have potential problems.
- Thread starter Dave7
- Start date
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ebikeerwidnes
Guru
- Location
- Z’ha’dum
Yes - it is complicated
you have to sort things out based on a best guess - and hope you have not missed anything
If all the family are being reasonable then you can work it all out
My Dad spent ages sorting his will out - several times as circumstances changed
He told me that the chances were that I would get naff all - although had had a good pension pot and it had all been withdrawn and was in an interest bearing bank account - he expected to use it all up in care costs after the first one of them died
Basically - my Mum had dementuria and needed looking after - and Dad was injured in WW2 and had finally ended up in a wheelchair after fighting it for decades - so would also need care
anyway - they both died within a few months of each other which was about the only circumstance he hadn't thought of
Kinda screwed up what was left to several people because of the slightly weird was it was organised (it's too complicated!)
My mother-in-law was thinking of changing hers at one point
my my wife persuaded her to leave it as an equal split between the 3 children and not complicate it
good job - even as a very simple will with a straight split it was difficult for the girls to sort out due to the emotions and stuff after the shock
anyway - sorry to go on
just wanted to say good luck and hope you get it worked out
as long as the family know you have the best of intention and love them then it'll work out
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And then there is 'deprivation of capital' if you then need to access state help.
https://www.entitledto.co.uk/help/deprivation-of-savings-and-other-capital-universal-credit
https://www.entitledto.co.uk/help/deprivation-of-savings-and-other-capital-universal-credit
vickster
Legendary Member
Presumably you live alone and this won’t affect a live in partner? How old are you? Do you expect to need full time care in the near future?
If not, what will you do if you can no longer live independently in your current property but could in an assisted living type place which the state won’t fund (or indeed any care if you have over 24k in savings) /wish to move / downsize.
Sounds a complete can of worms just so you might not have to fund your own care / can leave some money to your daughter.
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ebikeerwidnes
Guru
- Location
- Z’ha’dum
My Grandad lived with someone else
They had been "together" for many years - both had spouses that had died many years before and it all worked out for them
marriage was never on the cards
Anyway - his will left all the contents of the house to her but left the actual house to my Dad - but with a condition that she was allowed to live in it rent free until she died or no longer needed it
As a result my Dad was responsible for all the maintenance of the house and garden - and even arranged for the rooms to be redecorated when necessary although that was probably not his responsibly
It worked because my Dad respected the concept and respected the relationship and the fact that they had cared for each other for many years so he acted properly and repsonsibility
He could probably have left it to fall apart around her but that would have been - just wrong really so he didn;t
but he could have
Only slightly difficult bit was the person to do the decorating - her son was a decorator and live 3 doors up - and had done all the decorating when my Grandad was alive
but he was rubbish - owned a small company but always sent a young apprentice around to do his Mum's house rather than doing it himself or sending an experienced person
and it was always rubbish
So my Dad got someone else he knew and had done his house many times - he apologised to the lady - but she was fine with it
Still - it did show that people need to react to potential problems by respecting the concepts and not just sticking to your rights
My wife and I have very simple will - no complications - I hope!
They had been "together" for many years - both had spouses that had died many years before and it all worked out for them
marriage was never on the cards
Anyway - his will left all the contents of the house to her but left the actual house to my Dad - but with a condition that she was allowed to live in it rent free until she died or no longer needed it
As a result my Dad was responsible for all the maintenance of the house and garden - and even arranged for the rooms to be redecorated when necessary although that was probably not his responsibly
It worked because my Dad respected the concept and respected the relationship and the fact that they had cared for each other for many years so he acted properly and repsonsibility
He could probably have left it to fall apart around her but that would have been - just wrong really so he didn;t
but he could have
Only slightly difficult bit was the person to do the decorating - her son was a decorator and live 3 doors up - and had done all the decorating when my Grandad was alive
but he was rubbish - owned a small company but always sent a young apprentice around to do his Mum's house rather than doing it himself or sending an experienced person
and it was always rubbish
So my Dad got someone else he knew and had done his house many times - he apologised to the lady - but she was fine with it
Still - it did show that people need to react to potential problems by respecting the concepts and not just sticking to your rights
My wife and I have very simple will - no complications - I hope!
mistyoptic
Vintage
- Location
- A parallel reality
Parents in Law did this ten years ago as it would be their “forever home”. Mrs Optic owns their bungalow. Now they want to move into a “McCarthy and Stone” type sheltered housing. It looks as though there’s now capital gains tax to pay and also stamp duty on the purchase of the sheltered housing because the transactions are by a third party and not them as the owner-residents. Potential “penalty” of about £35k.
TAKE GOOD ADVICE, NOT FROM A FORUM
spen666
Legendary Member
That sounds like a will drafting mistake possibly,
The usual position in such a bequest is that the occupant is responsible for redecorating the residence, and sometimes also for the maintenance
spen666
Legendary Member
good points.
Even if In laws did not want to move and remained in the house until they died, Capital Gains Tax (CGT) would clobber your wife as it would be payable on the value of the house from the date of transfer to date of sale, rather than ifrom date of death of remaining parent to sale.
CGT is payable as the property is not your spouse's sole or main residence from the date of transfer or date of death.
Slick
Guru
I'm aware there is differences in law between Scotland and England, but I bought my mum and dad their house.
I spoke with the entire family before I did anything to see if anyone was in a position to help or even wanted to, but nobody was and mum had by this time said that she would prefer it just to be me to keep it simple.
A couple of years later, I sold it and bought them another one, and my old man loved it. (Probably still my proudest moment)
There was no rent, no written agreement, and when the time came, it was willed to me and me alone and against my better judgement, I sold it to my sister for what I paid for it.
Sometimes it can be simple just because it is.
I spoke with the entire family before I did anything to see if anyone was in a position to help or even wanted to, but nobody was and mum had by this time said that she would prefer it just to be me to keep it simple.
A couple of years later, I sold it and bought them another one, and my old man loved it. (Probably still my proudest moment)
There was no rent, no written agreement, and when the time came, it was willed to me and me alone and against my better judgement, I sold it to my sister for what I paid for it.
Sometimes it can be simple just because it is.
johnblack
Über Member
- Location
- South Northamptonshire
I have been thinking about future proofing things recently as I don't really think the mirror wills that me and the wife have are really strong enough, they were at the time but things change. Interestingly I received an email from Costco today with an offer through one of their partners for estate planning at reduced rates including wills, trusts, LPA's. The company is an IFA called Assured Private Wealth. Would be interesting to know if anyone has heard of them.
Financial advice is a regulated profession so why not check out the FCA website. There are lots of clones about where you think you are talking to A but you are really being ripped off by B. Check the people against the FCA register too.
https://www.fca.org.uk/search-results?search_term=Assured Private Wealth&category=f.Category%7Ccategory=firms&sort_by=relevance
[Not on the register so may not be UK based which is important]
johnblack
Über Member
- Location
- South Northamptonshire
Found them! https://register.fca.org.uk/s/firm?id=001b000001SHYrzAAH Now I really want to know what a regulatory Sandbox is!
Coming back to the original comment by @Dave7, it is a minefield as highlighted by this BBC article. Granted the laws are different north of the border but it shows a) understand what you are signing b) mistakes happen with lack of understanding and c) the mistakes can be rectified at a cost.
https://www.bbc.co.uk/news/uk-scotland-glasgow-west-68348425
https://www.bbc.co.uk/news/uk-scotland-glasgow-west-68348425
rogerzilla
Legendary Member
Another piece of advice as we've just been burned by this one.
My parents made modest annual gifts to my sister and me as the post-tax profit fom a rental property they owned. We used these to reduce our mortgages.
These gifts were obviously regular and from surplus income, so legally exempt from IHT.
However, in practice it is impossible to prove this to HMRC unless the donors kept, as our solicitor says, "forensic" records of their personal income and expenditure for the 7 years, with receipts prior to death. Google form IHT403 and you'll see the problem.
We are just going to have to pay the tax - this has now been double-taxed as income tax was already declared and paid by my parents. It's only a few thousand but it feels like an insult to their memory, as they thought this was all legally set up (my father was an accountant), and it was, but not easily provable.
My parents made modest annual gifts to my sister and me as the post-tax profit fom a rental property they owned. We used these to reduce our mortgages.
These gifts were obviously regular and from surplus income, so legally exempt from IHT.
However, in practice it is impossible to prove this to HMRC unless the donors kept, as our solicitor says, "forensic" records of their personal income and expenditure for the 7 years, with receipts prior to death. Google form IHT403 and you'll see the problem.
We are just going to have to pay the tax - this has now been double-taxed as income tax was already declared and paid by my parents. It's only a few thousand but it feels like an insult to their memory, as they thought this was all legally set up (my father was an accountant), and it was, but not easily provable.
spen666
Legendary Member
Why do you think these are exempt from IHT? If made within seven years of death, they are normally liable to be taxed as part of the deceased's estate
I would be interested upon what basis you think these gifts are "legally exempt from IHT". They do not appear to be gifts out of income in the definition for IHT purposes
I think you may be conflating 2 different types of tax.
The fact your parents paid Income Tax is not relevant for IHT. If it were relevant, there would be virtually no IHT or CGT to pay because the original source of the money for buying most assets that are passed on death is taxed income
IIRC any gift made within 7 years of someone's death is liable to be taxed as part of the deceased's estate. There is a tapering scale of tax depending on how long before the death the gift was made.
https://www.gov.uk/inheritance-tax/gifts
