Wills for Non-Married Couples
Everything will go to your children NOT your partner…
Is this in line with your expectations? Without the appropriate will, the government will make sure all of your wealth passes to your children. If you do not have any children, it will pass down to surviving family members including parents, siblings, aunts, uncles etc.
If you own a property together and the estate is not planned correctly, your partner will either have no home to live in or your children could potentially be disinherited.
Significant Benefits of Using A Flexible Will if You Are Not Married
Control Who Inherits Your Wealth
By utilising trusts within the Will, you can have absolute certainty that your plans for your family will be carried out rather than trusting in an individual who may not follow through on your wishes when it counts.
Prevent Any Risk of Your Children losing out on their inheritance
By protecting your share of the assets within the relationship, you can be certain that YOUR children will be protected in the future and eliminate risk of disinherting them.
Own a Property with A Partner?
A Flexible Will can establish a special type of trust (A Right To Reside Trust) and allow your partner the right to stay in your share of the property for a specified time or event occuring.
Enjoy Maximum Protection for Your Loved Ones
As your children will be beneficiaries to a trust, the assets inherited are protected by a trust and so protects your children from threats to wealth such as divorce, creditor attacks, bankruptcy, poor choices etc.
What Is A Right To Reside Trust?
When the main home is owned jointly there are two seperate ways in which the beneficial ownership can be administrated. The common form of ownership is called Joint Tenancy. Both parties own the property 100% each on a joint and several basis
What this means, is that both parties are completly responsible for the whole property, so if one party dies, 100% of the ownership will pass automatically to the surviving owner. That includes all debts and liabilities secured onto the property (which may not be yours but you will still be liable)
With Joint Tenancy, you are not able to distribute any share of wealth unless the joint owner (your partner) dies before you – not exactly an ideal situation right?
The second form of beneficial ownership is known as Tenants in Common. With this form of ownership you own a specific share of the property, normally a 50:50 equal share, but it can be different dependant on the situation.
This tyoe of ownership effectively splits the property ownship into two parts. Each owner, if living in the property can then set up a special type of trust that will allow the surviving owner the right to occupy the share of the deceased owner. So ownership can still go to the children, but use and enjoyment will belong to the surving beneficiary under certain conditions.