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.
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 Watertight
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.
Communicating Your Wishes
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.
Reviewing and Updating 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.
Tailored Estate Planning with us
At I Laws 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.
