Inheritance

I think you need to see a solicitor. Alone.

I have a problem along the same lines as you. I was advised to use a financial advisor and I think this is absolutely the best thing for you to do. Although you will have to pay a fee, a good advisor will help you tie up everything, work out percentages (what is fair for each person) and give you peace of mind. It is well worth it.

Why bother tying your money up in the house, keep it invested and split it between your two children when you die. That way yours get what you have built up and his get what he and his ex built up. Do you really need to dip into your nest egg for yourselves? It's no doubt tempting but is it necessary?

I think I would give half to the children now and leave the rest until they inherit, keeping it all could mean a big tax bill later

You need a solicitor to advise and sort it out for you as soon as possible. Well worth the money,

It all depends on what is in both your wills. You need to state clearly what your children will get. His will needs to reflect what you have in yours.

I remarried 3 years ago (both were about to be 70). Rewrote our wills when I moved in with DH after selling my house.

Dvidhs Big risk

Give then more than £3000 per year and you're OK.

Give more than that and if you die within 7 years, they will pay inheritance tax on it anyway (if you think your estate is more than the threshold allowance.

I agree there is no point altering the house arrangements. It is too complicated.
Give some of your money to your children now if you can / wish, but keep the bulk for them to inherit when you die.
Don’t over complicate things for the future.
Make sure you write a new will if you haven’t already done so.

Davidhs - apologies - my post should read

Give them more than £3000 per year and you're OK

Give them £3000 or less per year and you're OK

I agree with the others - give some to your children now and leave the rest to them in your will, if there is any.

You might need the money yourself, you never know what is around the corner, and if your money is tied up your DHs house you won’t have any spare.

There is always risk that is why you spread the risk, at 70 or so life expectancy is good unless there is a existing health issue.
The 7yrs means tax free, before that it tapers off year by year.

Thank you all so much for your input. We have got a solicitor and are due to make our wills. The house will be jointly owned.
The tenancy in common is mentioned in the will and obviously I want to honour the wishes of our deceased spouses. If I put half into the house I don’t have another half to give to my children but my husband is nearly 10 years older than me and if he did die before me - the home that I have called ‘home’ wouldn’t be any more. I will book an appointment to see a solicitor on my own.

"We"? A solicitor that also sees your husband cannot advise you on your own best interests with regards to the relationship.
You need to see your own solicitor.

A different solicitor

I would leave things as they are ,his house goes to his child your proceeds from your house goes to your children ,he can change his will to give you life tenancy so you have security .I know families who were gutted that a "new" wife walked away with everything their mother had worked for when their dad died just weeks after marrying her .I wouldn't do that to someones children .At this stage in your life you need to see the whole picture

Paddyanne but what if OPs equity money is being used for upkeep etc of the partners bills

Or as their joint spending money so all of his income gets to go on maintaining the property.

In both of those circumstances she is basically investing in the step childrens inheritance

"Paddyanne but what if OPs equity money is being used for upkeep etc of the partners property

Sorry meant property not bills

Its a recurring theme

Woman moves into mans property. Woman sells own property. Couple's available funds increase. Funds get depleted on home improvements on the home that is in the mans name...

Its not a good scenario for a woman to be in.

Notanan2 - I have no intention of not having joint ownership of the property. If I choose to do it - it would be in both me and my husband’s name

You cant have joint if 50% is earmarked for step kids.

You could have at most half, with you paying for ALL the upkeep on 100% of the property which could drain your sale proceeds dry over time

You'll have 1/4 unless you outlive DH.

You need to make sure that your property money is protected for yourself and not soaked into benefiting the other 75% of the property

You are the one shouldering all of the financial insecurity/risk

Im not as concerned about inheritance as I am about your own future needs and wants.

I think you need to ring fence your own security somehow, which is harder done with your property sold

Why not just continue to rent out your house, as you do now, to provide you with an income. If you die first, your house goes to your family-no hassle. If he dies first, his house goes to his children (or just his wife's share, if he wants you to have half) and you move back into your old house or sell your old house then to buy out his family's share.

Why complicate the matter of buying a stake in his home now! What if, in the future, something happened and you divorced. You may think it unlikely but you never know. Or, what if one of his family wanted to live with you if their circumstances changed and it didn't work out too well for you. If it was me, I would keep my finances separate to ensure my children inherited all my previous wealth and I would just contribute a fair amount to your husband's household expenses.

Oh, just reread and see you have already sold-a bad decision, in my opinion. Owning a house is better than money in the bank.

This seems like quite a complicated matter and I think you should see a solicitor before making any decisions. You have to be sure that any actions you take will hold up in law.