Mr has a son from a previous marriage. Mrs has a daughter from a previous marriage. Mr & Mrs have no children together. Commonly, in a Will, Mr & Mrs leave everything to each other and then 50/50 to children on the second death.
It can be problematic. For example, if Mrs dies, then Mr will inherit everything. Should he remarry or change his will, when he dies, his whole estate can pass on to his new wife and eventually on to her children when she dies. It would mean that the original children get nothing, called Sideways Disinheritance. If you have children from different relationships, your wills are watertight, and your wishes are understood and catered for correctly. Always tell your Will writing professional about your full circumstances.
key takeaways:
- Avoid standard mirror wills if you have children from previous relationships these can unintentionally disinherit them.
- Use Life Interest Trusts to let your spouse benefit during their lifetime while protecting the capital for your children.
- Consider Mutual Wills or Discretionary Trusts to lock in your wishes and limit changes after your death.
- Gift specific assets or amounts to your children upon your death, so they receive an immediate inheritance.
- Always disclose your full family details to your will writer to ensure your estate is structured around your real-life circumstances.
Understanding Sideways Disinheritance
Sideways Disinheritance is a significant issue that can arise in blended families where individuals have children from previous relationships. It refers to a situation where the intended beneficiaries of an estate, usually the children of a prior marriage, are disinherited due to changes in the estate distribution after the original testator’s death.
The Problem with Standard Wills
In many cases, couples without mutual children might opt for a standard will where they leave everything to each other and then split the estate between their children after both have passed away. While this seems fair and straightforward, it can lead to unintended consequences.
Scenario Breakdown
First Death: When Mrs dies, her entire estate, including any assets and property she brought into the marriage, is transferred to Mr.
Potential Changes: Mr now has the power to change his will or remarry. If he remarries and decides to leave his estate to his new spouse, Mrs’s original assets can end up with the new spouse and eventually her children.
Final Distribution: Upon Mr’s death, the new spouse inherits the estate, which may then be passed on to her children, effectively disinheriting Mrs’s original children.
Ensuring your will is properly written and protected
To prevent Sideways Disinheritance, taking specific steps when drafting your will is crucial. Here are several strategies to ensure your wishes are respected:
- Life Interest Trusts: This arrangement allows the surviving spouse to benefit from certain assets during their lifetime (e.g., living in the family home) but does not give them full ownership. The assets then pass directly to the children after the surviving spouse’s death.
- Discretionary Trusts: A discretionary trust allows trustees to decide how to distribute the estate’s income and assets among the beneficiaries. It can protect the interests of children from previous marriages while still providing for the surviving spouse.
- Mutual Wills: Mutual will involve an agreement between spouses that their wills cannot be changed after one dies. It ensures that the estate distribution remains as initially intended.
- Specific Gifts: Specify particular assets or sums of money to be given directly to children from previous marriages upon the first death, ensuring they receive part of the inheritance immediately.
- Inheritance Agreements: Create formal agreements about how family members should handle the estate. These agreements can provide additional assurance that everyone’s interests are considered.
Why it’s important to be open about your estate plans
Effective communication ensures your estate is handled according to your wishes. Always be transparent with your will, writing professionally about your full circumstances, including details about previous marriages and children from those relationships. Clearly outline your intentions for your estate to prevent misunderstandings and disputes among beneficiaries.
When and why you should update your will
Regularly review and update your will to reflect changes in your life circumstances, such as remarriage, the birth of additional children, or significant changes in your financial situation. This practice helps ensure that your estate plan remains aligned with your current wishes and provides for all your loved ones.
The Role of Executors and Trustees
Choosing the suitable executors and trustees is crucial. They should be individuals who understand your family dynamics and are committed to carrying out your wishes impartially and fairly. Consider appointing independent trustees or professional executors if you anticipate potential beneficiary conflicts.
Estate planning that suits your family’s situation
At ILaws Scotland, we understand the complexities of estate planning, especially in blended families. Our team is dedicated to providing personalised advice to help you create a comprehensive and watertight will. We ensure your wishes are documented, and your estate is protected from unintended disinheritance.
Conclusion
Sideways Disinheritance can have devastating effects on families, particularly those with children from previous marriages. Taking proactive steps to ensure your will is watertight and reflects your true intentions is essential. You can safeguard your children’s inheritance by considering options such as life interest trusts, discretionary trusts, mutual wills, and specific gifts.
Don’t leave your estate to chance. Contact us today to learn more about how we can help you protect your family’s future and ensure your wishes are honoured. Our team is here to provide the guidance and support you need to create a robust and effective estate plan, giving you peace of mind and security for your loved ones.
FAQs
Q1. What is Sideways Disinheritance?
It’s when your children lose their inheritance because your spouse remarries or changes their will after your death.
Q2. Can a simple will protect my children?
No. A standard will can leave everything to your spouse, who may later exclude your children.
Q3. What steps can I take to make sure my children inherit what I want them to?
Clearly stating your wishes and planning ahead can help avoid misunderstandings or unintended outcomes.
Q4. What should I share with the professionals preparing my will?
Provide clear details about your assets, family structure, and your wishes. Transparency helps ensure your will is accurate and aligned with your goals.
Q5. When should I update my will?
After major life events like remarriage, new children, or changes in finances or relationships.
Q6. Can I protect my children if my spouse remarries?
Yes. Options include creating a trust or leaving certain assets in a way that cannot be changed by your spouse, ensuring your children’s inheritance is secure.
Q7. What are the risks of not planning properly?
Without careful planning, your children could lose their inheritance, family disputes may arise, and your estate might not be distributed according to your wishes.
