Hello and thanks for using Just Answer.
My name is ***** ***** am happy to assist you with your enquiry.
You can indeed put a similar provision in your new Will (I'm sure you are aware that you will need to make a new Will once you have married, because any previous Will automatically becomes invalid).
I am sure your Solicitor will advise you, but you will have to make sure that reasonable financial provision is given to your partner/wife in your Will. By leaving her a right to remain in the property would be sufficient provision as regards ***** ***** needs- you will need to speak to your Solicitor as regards ***** ***** legacy you may need to leave to her.
As regards ***** ***** position, there is no way to reduce any Inheritance
tax in this situation, unless you were to gift the property to your daughter during your lifetime and then survive for 7 years, but even that would not work if you were to remain living there, as it would be classed as a "gift with a reservation" and furthermore would mean you can't then guarantee your wife has someone to live if you were to die first.
I hope this assists and sets out the legal position.
Hi Al. Thanks for the advice. I am actually the female partner but no matter, the advice works the same! What about if I was to put the property in trust to my daughter? How would that affect inheritance tax for my daughter and my partner's (Teddy) situation? (my daughter is an adult)
I'm afraid even if you property the property in trust, for Inheritance tax purposes, if the donor (you) set up such a Trust, it will be seen as a scam as far as HMRC are concerned, as you will be reserving a benefit from the trust (ie the right to remain living there). Therefore, you will still be treated as owning the property when calculating the value of yor Estate for IHT purposes.
I am sorry there is no magical solution to this issue.
Thanks Al one more question.
I know its very complex, but very simply how does a trust work then? If I put my house into trust for my daughter what happens? Is the problem that I will continue to live in it or that my husband will after I die?
There are lots of differen type trusts, which you are best discussing with your Solicitor, rather than through this site, but they all basically grant your Daughter some legal interest in the property now or at some time in the future.
For Inheritance tax purposes, unless you grant your Daughter the full ownership of the property (ie by way of a gift) now and you vacte, ther eis no way you will be able to save IHT.
If you set up a Trust for your daughter, it would mean Teddy wouldn't be safeguarded and you could not include a suitable provision in your Will that he be entitled to remain living there
I hope this helps.