Protecting Your Children's Inheritance The Right Way
Many couples rely on basic wills, leaving everything to each other and then to their children. While this seems straightforward, it comes with significant risks. What your children inherit often depends on what happens in the surviving partner's life—and the outcomes aren’t always what you’d expect.
Common Risks of Basic Wills
New Relationships
If the surviving partner remarries, their new spouse could inherit everything, leaving your children without a share.Care Fees
Long-term care costs can quickly deplete the estate, leaving little to pass on.Debt and Bankruptcy
Inherited assets may be used to settle debts, reducing or eliminating your children’s inheritance.Family Conflicts
Step-families can face disputes, especially if new wills are made that exclude original beneficiaries.
A Real-Life Solution: Alex and Sam’s Story
To avoid the risks associated with basic wills, Alex and Sam decided to secure their children’s inheritance through a Protective Property Trust Will. Recognising that their family home was their most valuable asset, they structured a trust specifically to protect it.
Under this arrangement, each partner owned a share of the property, which they gifted to their children via the trust. This setup ensured that the surviving partner could continue living in the home with clearly defined rights, while the remainder of their assets were left to each other.
The trust provided vital protection for the children. If Alex passed away first, their chosen trustees ensured that Alex’s share of the property was safeguarded according to the trust’s terms. This meant that even if Sam remarried, incurred debts, or made a new will, Alex’s share of the home remained secure for their children.
When Sam eventually passed away, the trust came to an end, and Alex’s share of the property was passed directly to the children. Additionally, if Sam had not remarried or altered their own will, the children could also inherit under Sam’s estate, further benefiting from the thoughtful planning and protection provided by the trust.
Peace of Mind Through Planning
This type of planning gives parents like Alex and Sam peace of mind, knowing their children’s inheritance is safeguarded against unforeseen events.
If you want to learn more about how a Protective Property Trust can protect your family’s future, get in touch for a no-obligation consultation today.
