HA R R I SON CL A R K R ICKE R BY S BLENDED FAMILIES AND INHERITANCE – WHAT IS THE BEST WAY TO LEAVE MY MONEY?


54


Second marriages, now very common, do bring with them their own unique set of issues to consider when thinking about how to provide for children from the first marriage, the second spouse and children from the second marriage. Add more marriages/serious relationships and children in, and the picture becomes more complex.


Even if money is no object and there is plenty to go round, how do you look after everyone and also keep an eye on being tax efficient into the bargain?


If everything is left to the second spouse outright, this is very tax efficient, as spouse relief means that no inheritance tax (on present legislation, which is being reviewed) is payable.


But will that second spouse leave anything in their own will to step children who are the deceased’s children from their first marriage? Or will the second spouse just leave it all to their own children, including those from the second marriage, leaving out the spouse’s children from their first marriage, depending on the wording and the instructions.


The second spouse could, of course, spend the money during their lifetime so there is nothing to be left under their will at all.


Or they could be made bankrupt. If the second spouse remarries, their own new spouse may receive that money under a new will or on intestacy or may take a large chunk if they divorce.


If the opposite approach is taken and everything is left to children from the first marriage, then they won’t complain, but the second spouse is likely to, especially if the house they live in has to be sold to ‘pay off’ the step children. Inheritance tax could be due without the benefit of any spouse relief.


Another option is for the second spouse to be left assets in trust rather than outright; they would be entitled to the income only during their life or until their remarriage, but the capital in the trust passes to joint children and the children from the first marriage on the second spouse’s death.


The choice of trustees is crucial, as is the choice of assets to go into the trust. There are no simple answers, and good advice is essential to avoid leaving your family with problems. Just hoping that everyone will get on is no safeguard against disputes later.


For advice and help, contact Alex Taylor on 07825 058 612 or at ataylor@hcrlaw.com


LIVE24-SEVEN.COM


BUSINE SS & EDUCATION HCR


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52  |  Page 53  |  Page 54  |  Page 55  |  Page 56  |  Page 57  |  Page 58  |  Page 59  |  Page 60  |  Page 61  |  Page 62  |  Page 63  |  Page 64  |  Page 65  |  Page 66  |  Page 67  |  Page 68  |  Page 69  |  Page 70  |  Page 71  |  Page 72  |  Page 73  |  Page 74  |  Page 75  |  Page 76  |  Page 77  |  Page 78  |  Page 79  |  Page 80  |  Page 81  |  Page 82  |  Page 83  |  Page 84