Published on: 6th June 2017

We can help protect your assets from sideways dis-inheritance

We are living longer, and more and more of us are getting married for a second time. This can have unintended consequences for the children of the first marriage.

Here is an example which explains what can happen:

Mr & Mrs Green are married for many years. They have two children - Adam and Belinda. Mr Green dies aged 68 whilst Mrs Green is still a very sprightly 63. A few years later Mrs Green meets Mr Brown (who is five years younger than Mrs Green) at the local ballroom dancing club. After some time they get married. Neither of them realise that marriage revokes a Will. So Mrs Brown (who was Mrs Green) has no Will. Mr and Mrs Brown live happily together for a few years and then Mrs Brown dies. She had always thought that her estate would go to Adam and Belinda. This is not the case. Mrs Brown will have died intestate. The laws of intestacy determine that the first £250,000 goes to Mr Brown. 50% of everything over £250,000 goes to Mr Brown and 50% goes to Adam and Belinda. Mrs Brown died owning a house worth £400,000-00p and she had ISAs and savings of £80,000. Mrs Brown died thinking that Adam would receive £240,000 and Belinda would receive £240,000. In fact Mr Brown receives £365,000, Adam receives £57,500 and Belinda receives £57,500. This is known as sideways dis-inheritance.

We can help families stop this happening by using simple non-restrictive trusts. If you are in a second marriage then please contact us for advice. Click here to arrange for a consultant to visit you and discuss the options.

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