Home-made Wills

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Will with conditions?

Postby WILL*REMAIN*STRONG » Sun Jun 07, 2009 11:11 pm

Ok we still haven’t made a will as we are still thinking about everything.

Can you leave a house to someone with a clause in the will stating that it must be used as a long term investment property to rent out? Say the little people are too young to need the property to live in and don’t actually need the money, would it be a possibility to make sure the house does not get sold for a minimum period of time?

Thanks in advance for any help. :D
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Re: Will with conditions?

Postby Conveyancer » Thu Jul 02, 2009 11:51 am

WILL*REMAIN*STRONG wrote:Can you leave a house to someone with a clause in the will stating that it must be used as a long term investment property to rent out? Say the little people are too young to need the property to live in and don’t actually need the money, would it be a possibility to make sure the house does not get sold for a minimum period of time?


I am sure it is possible to do that, or at least express a wish to that effect. However, you do need to think carefully about whether it is wise. Whilst on the one hand you understandably want to ensure the best for the little people, on the other it does not do to fetter the trustees' discretion too much so that they have no room for manoeuvre if circumstances require it. The thing to remember is that decisions made for the living really ought to be made by the living and not by the dead.

Quite apart from the fact that the letting market may not be good in your area at the relevant time, income is not guaranteed. Some tenants do not pay the rent. You may get void periods. Essential repairs may need to be carried out that eat into income. So, if the priority is to provide income, rather than capital appreciation, insisting on the property being let may not be a good idea.

Do I detect here a desire to keep the house in the family? That is entirely understandable, but may not be in the best interest of your children.

Anyway get on and make that will!
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Postby despair » Thu Jul 02, 2009 1:02 pm

If effectively this creates a Trust ...........new changes installed by G Brown mean that the trust would be taxed every year

See a really good Trust Lawyer and take his advice before you make any decisions
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Re: Will with conditions?

Postby andrew54 » Thu Jul 02, 2009 2:44 pm

Conveyancer wrote:Anyway get on and make that will!


Hi Conveyancer, if you keep saying it enough I might make a will one day!
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Re: Will with conditions?

Postby WILL*REMAIN*STRONG » Thu Jul 02, 2009 9:33 pm

Thank you Conveyancer, our main concern is that if anything happened to us whilst the little ones are young they would squander and rave the money away. Perhaps it would be enough to have the proceeds from our house put in trust so they cannot touch it until they are 21?

We don't plan on dying young :lol: you just think about these things, it would be awful if the people you want to be secure didn't see a penny and the people who don't deserve a penny get the lot, it could almost keep us awake! :shock:

Thanks again, we will try to get around to doing it soon. These things tend to take a back burner when busy with so many other things. One thing is for sure we don't want to rush into anything, it will require much thought and advice from family too. :)
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Re: Will with conditions?

Postby Conveyancer » Thu Jul 02, 2009 10:06 pm

WILL*REMAIN*STRONG wrote:These things tend to take a back burner when busy with so many other things.


Do not delay! You know you can find the time.
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Postby Mojisola » Sat Jul 04, 2009 9:52 pm

despair wrote:If effectively this creates a Trust ...........new changes installed by G Brown mean that the trust would be taxed every year


Could you explain a bit more about this?
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Postby despair » Sun Jul 05, 2009 8:28 am

I am not a trust lawyer

But as I understand the changes made in last 2 budgets a trust that is set up to benefit children etc will now very likely be subject to a yearly tax of around 30% ...........there was a lot of concern that trusts that were set up in the past to benefit orphans etc could be caught in the trap

Its all part of G Browns desire to tax everyone out of everything except of course MPs

You need an expert Trust Lawyer to advise on the fine details and what is and is not possible
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Postby andrew54 » Sun Jul 05, 2009 8:34 am

despair wrote:Its all part of G Browns desire to tax everyone out of everything ...

Or was it to prevent the rich from avoiding paying inheritance taxes?
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Postby despair » Sun Jul 05, 2009 8:51 am

The problem is IHT is hitting very ordinary families simply because of high house prices across a lot of the UK

But trust taxes are going furthur than that ...........they are as i understand it able to hit a very simple trust any of us may have in place simply to ensure that if we die when our children are tiny/young they can be cared for via the funds in trust
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Postby Mojisola » Sun Jul 05, 2009 3:42 pm

despair wrote:I am not a trust lawyer

But as I understand the changes made in last 2 budgets a trust that is set up to benefit children etc will now very likely be subject to a yearly tax of around 30% ...........there was a lot of concern that trusts that were set up in the past to benefit orphans etc could be caught in the trap

Its all part of G Browns desire to tax everyone out of everything except of course MPs

You need an expert Trust Lawyer to advise on the fine details and what is and is not possible


Thanks, despair. We've just made new wills that involve setting up a trust and this wasn't mentioned so I'll be asking some questions now!
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Postby despair » Sun Jul 05, 2009 6:38 pm

If you are talking about standard Nil rate band IHT trusts they are still OK
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Postby catapult1 » Sun Jul 05, 2009 7:34 pm

I would suggest that anyone thinking of getting a will written or rewriting their existing one also think about what gifts they have given recently.

A substantial gift to one child could put the balance of division out of kilter or upset one over having 'more of the pot' than the other.

Unless spacificly mentioned a gift cannot be used when dividing up the estate BUT can be used to determin if IHT is paid. Obviously depending on timescales etc.
My answers are not of a legal nature, only what I consider to be common sense.
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Postby silverstar » Fri Jun 04, 2010 12:58 pm

despair wrote:The problem is IHT is hitting very ordinary families simply because of high house prices across a lot of the UK

But trust taxes are going furthur than that ...........they are as i understand it able to hit a very simple trust any of us may have in place simply to ensure that if we die when our children are tiny/young they can be cared for via the funds in trust


When my children were young that was provided for as an extra in my insurance that I took out. Funds would have been provided to whoever was caring for them.
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Postby catapult1 » Fri Jun 04, 2010 4:43 pm

My MIL law died last year and left her 4 grandchildren an equal share each of 1/3 of the estate to be kept in trust untill they are 21.

Disregard the fact the executor has done her calculations wrong and they have each got £13k less than they should she still hasn't sorted it out.
My answers are not of a legal nature, only what I consider to be common sense.
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