Thoughts on my will.

Where I’m from it’s best To leave everyone a little bit so that there are no grounds for a dispute.

It doesn’t matter if there are letters written and deposited with a solicitor, some people are just so entitled that they can get a solicitor to contest the will anyway, just for revenge.

Some people here have a very lovely and rosy view that their children will dutifully and diligently leave inheritance monies to their own children and help them in their lives.

Maybe I’ve heard of more horror stories of adults fecklessly spending everything they were left and leaving their own children nothing.

And contesting a will is entirely up to the offended, notwithstanding any letters written.
There will always be a contrary one who feels entitled and seeks revenge for being left out, and I’ve been advised it’s best to nip that in the bud by leaving them a peppercorn amount.
The inclusion of a letter may think you’re covered, but it won’t stop an entitled disgruntled one hell bent on ruining everything for everyone for as long as possible if they’re left nothing.

Apologies, the lack of forgiveness and bitterness I was referring to was my impression of the OPs post and not a broad brush for everyone.

Please refer to my comments above.

M0nica

I thought people just helped their children as and when, according to their means, without necessarily thinking deeply about it.

When DGS nursery went bust at the end of the first week of term, just after everyone had payed the terms fees, and on the same day DS's car had a terminal breakdown on the motorway, we immediately offered financial assistance, we didn't think about it, plan it, work out the tax significance, anymore than I gave deep thought to jumping into my car and going to them for a week to provide childcare while they found another nursery place.

It was the believing in giving while living. For most people helping their children when they can is so instinctive. I doubt they have ever thought about whether they believe in it or not, I certainly haven't. I just do it.

The OP was about wills, money for GC.

We do believe in giving while living.

I wasn't talking about childminding or looking for a nursery or car repairs. Apples and Oranges. I was referencing planned giving prior to death. We reduce our estate (for wills) when possible following rules and keeping records.

--IHT have 7 year rules on gifts, we keep records, because we give generously now, hopefully not at death.

--Annual Exemption: "People can gift up to £3,000 per tax year tax free. This is the total amount gifted, not per person. So you would need to spread this around your family if you wanted to gift money to multiple family members. A married couple or those in a civil partnership will have an annual exemption of £3,000 each."

--Small gift allowance: "You are also able to gift up to £250 to as many family members as you want tax free. However you can’t do this if you have already used some or all of the annual gift exemption on the same person."

--Small gifts for weddings and civil partnerships: "If you have a family member getting married or starting a civil partnership then you can gift up to £5,000 to your child, £2,500 to a grandchild or great-grandchild or £1,000 to any other person."

Cabbie21

Norah, there are no rules about how much anyone can give in their lifetime. There is no gift tax. But there are, for some, considerations about Inheritance Tax and yes, there are rules about that eg regarding gifts going back seven years prior to death. If this is likely to affect anyone, they are well advised to find out the facts before, say, thinking their estate can avoid IHT by giving money or a house to their children.
For some, who might need to claim Benefits, there may potentially be an issue about deliberate Deprivation of Assets, or when the time comes for care home fees, there may be issues for those who have given money away during their lifetime, and there is no time limit of seven years here.

You can give away unlimited amounts out of your tax paid annual income, any property except your home is subject to CGT, the 7 yr rule and any deprivation of assets claim so tread very carefully.

So if you do have spare income you can give it away but you have to maintain your “lifestyle”, there are not going to be very many that have large sums to give in this manner. Those fortunate to have spare should consider giving it to children rather than investing in a buy to let which long term may well become a millstone

Those fortunate to have spare should consider giving it to children rather than investing in a buy to let which long term may well become a millstone

That sounds a very odd 'either/or'. Most people would invest any substantial sum of money in a range of traditional savings products from building societies to shares and everything in between, rather than a buy-to-let. I think that market has run out of puff, rents are going up because supply is going down because so many buy-to-let properties are being sold.

Ther may be very good reasons for not giving the lot to children, from being caught by later accusations of deprivation of capital, if you went into care and rented your home rather than owning it, to wanting the security of a large sum behind you to protect you from the vicissitudes of life.

And anyway, why not spend it doing things you want to do, perhaps not 'cigarettes, whisky and wild, wild women' but holidays, clothes, eating out and, most of all, being able to pay for private medical treatment, should the NHS let you down or for when you have reason not to trust it.

Thoro I left a cash amount to my 2 GC in my life and same to my sister. My S&D inherit 50/50. Nothing to my estD or my adored estGC, changed my will and left them out as I haven't seen or heard from them in 11yrs!

Katie59

Cabbie21

Norah, there are no rules about how much anyone can give in their lifetime. There is no gift tax. But there are, for some, considerations about Inheritance Tax and yes, there are rules about that eg regarding gifts going back seven years prior to death. If this is likely to affect anyone, they are well advised to find out the facts before, say, thinking their estate can avoid IHT by giving money or a house to their children.
For some, who might need to claim Benefits, there may potentially be an issue about deliberate Deprivation of Assets, or when the time comes for care home fees, there may be issues for those who have given money away during their lifetime, and there is no time limit of seven years here.

You can give away unlimited amounts out of your tax paid annual income, any property except your home is subject to CGT, the 7 yr rule and any deprivation of assets claim so tread very carefully.

So if you do have spare income you can give it away but you have to maintain your “lifestyle”, there are not going to be very many that have large sums to give in this manner. Those fortunate to have spare should consider giving it to children rather than investing in a buy to let which long term may well become a millstone

The 7 year rule, deprivation of assets, and giving out of income have been referenced. Keeping scrupulous records.

My point was different to that. The OP is about GC and wills.

I was suggesting giving generously to grandchildren now rather than after death - no pockets in a shroud.

We had a solicitor draft our Wills many months ago but it has not been finalised for various reasons. it is still on the “to do” list.

She seemed to know what she was talking about but who knows? I was recently speaking to a woman whose elderly Mother died. She used a solicitor to do her Will leaving everything divided between her 5 children. This woman received her share and was impressed that her Mum had left more than she thought. A while later she received a letter from the solicitor saying she had mistakenly divided it by 4 instead of 5 so they all had to pay back a share to the 5th sibling.
I have heard similar tales and seen them on the recent TV series.

I was suggesting giving generously to grandchildren now rather than after death - no pockets in a shroud.

Take great care giving to GC, many will spend it unwisely, put it in trust until they are 25 or let the parents decide what to do.

A local farmer left the lot - around £10m in todays value to 3 teenaged GS, predictably they p1??ed most of it, the bank and the taxman took about 80% of what was left, these days the 2 survivors live like itinerants.

Why did grandad do that - because he did not “approve” of who his son married!.

Once again katie59 I think you are dealing in wild generalisations with no foundation. Yes, some young people might blow the lot if they came into money young, but many more would take advice and use it to pay for their education and put a roof over their heads.

M0nica

Once again katie59 I think you are dealing in wild generalisations with no foundation. Yes, some young people might blow the lot if they came into money young, but many more would take advice and use it to pay for their education and put a roof over their heads.

Giving money for education is one thing, giving large sums to youngsters is a very bad idea, there are plenty of example of spoiled rich kids going off the rails.

Monica it’s not a wild generalization you are way out of line there, probably the worst thing you can do to a child or grandchild is give them too much too soon.

For me the estate would be divided three ways between the children. Show no favouritism. If you want to leave something to your grandchildren out of money you might have do that.

M0nica

Once again katie59 I think you are dealing in wild generalisations with no foundation. Yes, some young people might blow the lot if they came into money young, but many more would take advice and use it to pay for their education and put a roof over their heads.

I can't imagine why it matters. Gift given.

We don't want to hold on to what we've given, our GC range in age between early 40s to infants - not my worry how they spend their gifts.

My daughter set up a savings account for our granddaughter when she was born, this particular account will mature when she's 18. We contribute as well each month.
My daughter spent quite some time looking for an account that wouldn't pay out directly to our granddaughter as she didn't want her blowing it on handbags and shoes.
Can't think where she got that idea from... herself at the same age perhaps? 🤣

Norah

M0nica

Once again katie59 I think you are dealing in wild generalisations with no foundation. Yes, some young people might blow the lot if they came into money young, but many more would take advice and use it to pay for their education and put a roof over their heads.

I can't imagine why it matters. Gift given.

We don't want to hold on to what we've given, our GC range in age between early 40s to infants - not my worry how they spend their gifts.

So if they were spending it on drink, drugs and gambling that’s OK

Katie59

Norah

M0nica

Once again katie59 I think you are dealing in wild generalisations with no foundation. Yes, some young people might blow the lot if they came into money young, but many more would take advice and use it to pay for their education and put a roof over their heads.

I can't imagine why it matters. Gift given.

We don't want to hold on to what we've given, our GC range in age between early 40s to infants - not my worry how they spend their gifts.

So if they were spending it on drink, drugs and gambling that’s OK

How people spend their money gifts, or use/not use any gift, come to that - nobody should care.

So if they were spending it on drink, drugs and gambling that’s OK

Its NOT ok but if they choose to we cant stop them. People have to make their own choices and mistakes as adults.

I do get that the money might enable the behaviour whichbis I think your point really Katie59. But if they are of the personality to make those choices then I think they would make bad choices anyway. My son did and that without money enabling him, got some money, wasted it, and when he was ready dug himself back out again! But I don't think youth is a precursor for daft choices. My daughter was left money at 16 years of age; started a savings pot and bought her first flat at 25 with mortgage having assiduoudly saved, done over time etc to get the deposit. Two different personalities; different choices! Same circumstances!

I would rather delay money going to my family if it is all going to go on cigarettes, whisky and wild,wild women.

if they blow it all up their noses after I am gone and cannot see it happening I won't know..

However while the two of us are still around and could still both need care - and our taste in care homes is expensive, we are holding onto most of it to ensure that we can be in care for as long as needed at the standard we want. I had an aunt in care for over 6 years and her husband was with her for three of those years. So care could use up a lot of our money.

In my situation even though I have will and both powers of attorney. Inheritance is a mote point. Because if I have to go into a home my property will have to be sold and and savings used for the homes fees so there will be no inheritance .

I notice no one has thought of that possiblity.

Sorry MOnica you did mention it.

I have been given to understand that the Courts tend to favour family inheritance. So, if your will does not include one of your children, for any reason, they could take the case to the court and get awarded their proportion of the will. Have been told that one way to try to prevent this (if you really do not one or more of your children to inherit) is to include a note in th will exlaining WHY that child is beig left out.

Perhaps GSM will clarify if this is really true.

Place a letter with your will (do not attach it) explaining why a child has not been included. They only have grounds to challenge a valid will in England and Wales if they were financially dependent on you, you lacked mental capacity when making the will, or it was made under duress.

Yes, I did all that Fran & GSM, but I do need to update my will after moving here.