Preventing a family member inheriting money?

[schmalex]

Hi folks,

Hypothetically speaking, if there was a death in a family and a potentially large amount of money was to be shared out between siblings, is there any way of either preventing one of them gaining access to their share, or only receiving their share if they agree for its stewardship to be carefully managed by others?

Particularly so if the person has a history of extremely poor financial management.

[InitialDave]

Is this a question about how to word such a clause in a will for future issues, or relating to an inheritance from someone who has recently died?

If it's the latter, I doubt you can do anything if they're nominally responsible for themselves as a mentally competent adult. IANAL.

[TooMany2cvs]

schmalex said:

Hypothetically speaking, if there was a death in a family and a potentially large amount of money was to be shared out between siblings, is there any way of either preventing one of them gaining access to their share, or only receiving their share if they agree for its stewardship to be carefully managed by others?

Particularly so if the person has a history of extremely poor financial management.

You could apply for a variation of the will, leaving their share in trust.
https://www.gov.uk/alter-a-will-after-a-death

[brman]

TooMany2cvs said:

schmalex said:

Hypothetically speaking, if there was a death in a family and a potentially large amount of money was to be shared out between siblings, is there any way of either preventing one of them gaining access to their share, or only receiving their share if they agree for its stewardship to be carefully managed by others?

Particularly so if the person has a history of extremely poor financial management.

You could apply for a variation of the will, leaving their share in trust.
https://www.gov.uk/alter-a-will-after-a-death

except the first line of that link has a very relevant point:
"You can change a person’s will after their death, as long as any beneficiaries left worse off by the changes agree.".

[TooMany2cvs]

brman said:

except the first line of that link has a very relevant point:
"You can change a person’s will after their death, as long as any beneficiaries left worse off by the changes agree.".

But of course.

It'd be a bit st if you could be easily done out of an inheritance just by somebody saying "Oooh, they shouldn't have it", wouldn't it?

If they're aware that they're st at financial self-control, then they may well be happy for it to be in trust.

Edited by TooMany2cvs on Saturday 23 December 14:51

[4x4Tyke]

schmalex said:

Hi folks,

Hypothetically speaking, if there was a death in a family and a potentially large amount of money was to be shared out between siblings, is there any way of either preventing one of them gaining access to their share, or only receiving their share if they agree for its stewardship to be carefully managed by others?

Particularly so if the person has a history of extremely poor financial management.

It will depend on who wants to do this, the testator or one of the beneficiaries/siblings.

If it is the testator, then a trust might be an option.

https://www.which.co.uk/money/wills-and-probate/pa...

[brman]

TooMany2cvs said:

brman said:

except the first line of that link has a very relevant point:
"You can change a person’s will after their death, as long as any beneficiaries left worse off by the changes agree.".

But of course.

It'd be a bit st if you could be easily done out of an inheritance just by somebody saying "Oooh, they shouldn't have it", wouldn't it?

If they're aware that they're st at financial self-control, then they may well be happy for it to be in trust.

Edited by TooMany2cvs on Saturday 23 December 14:51

Absolutely, maybe me jumping to conclusions but I got the impression from the OP that the sibling would not be a willing party in this.

[anonymous-user]

Do not do estate planning via an internet car forum . I recommend Zoe Barton at Wilberforce Chambers for direct access expert advice.

[thepeoplespal]

I'd agree on not relying on a car forum for advice, but people don't know what they don't know.

If the person is feckless and on benefits and the money is fairly sizeable then a trust might be an option that is in that persons best interests as they may get to use money without disbarring them from all the state has to offer (not popular option on this forum).

If it's from a parent looking to stop a child from inheriting money, the will can be fought if they can show they are not provided for and they are a dependent.

I suspect it might be a trust that can provide for the feckless individual while stopping them make stupid decisions and spending it all; that you will be looking for.

I'm not sure there is appropriate wording to stop a will being contested by an aggrieved party, always thought that a clause that puts all legal costs on family member contesting the will might have some standing, or a clause that voids the provisions in the will and cuts the member or members contesting the will entirely out of the will might be the way to go; but it would nice to know if this is possible.

[schmalex]

Thanks for the advice, folks.

It’s a child (40’s) trying to protect a parent (60’s) from themselves

[anonymous-user]

If the parent has full capacity, they have the right to make mistakes. Don't be their mum!

[hajaba123]

schmalex said:

Thanks for the advice, folks.

It’s a child (40’s) trying to protect a parent (60’s) from themselves

Honourable if it is this, or is the child trying to mak3 sure there’s something left for them.....?

[konark]

Is the beneficiary bankrupt? If so the money will be taken to give to their creditors.

If beneficiary has debts the executor could offer to pay these off but only with beneficiary's consent.

[anonymous-user]

hajaba123 said:

Honourable if it is this, or is the child trying to mak3 sure there’s something left for them.....?

I suspect the latter. Inheritance is so toxic and distorting.

[schmalex]

Breadvan72 said:

hajaba123 said:

Honourable if it is this, or is the child trying to mak3 sure there’s something left for them.....?

I suspect the latter. Inheritance is so toxic and distorting.

No. The child wouldn’t be interested in any of it. The child would prefer that the beneficiary spent the money wisely during their retirement rather than squandering it on toys that they can’t afford as the beneficiary didn’t have the forethought to invest in a pension during their working life

[Caddyshack]

TooMany2cvs said:

You could apply for a variation of the will, leaving their share in trust.
https://www.gov.uk/alter-a-will-after-a-death

You can only vary the will if the beneficiary agrees

it needs to be in trust and the trustee decides if in the best interests of the beneficiary to do that.

[thepeoplespal]

Inheritance can be toxic if people allow it to be toxic.

My mum died a few weeks ago & my sister & step brother get what ever is left in the will after the equity release loan is paid off. For the help my step brother and his partner have given my mum, I couldn't see anyone more deserving. As for my sister, I got funds to go to University my sister never got, so it is evening up things, to my mind.

I could see that I, my brother & other step brother and step sister could all take the hump, but overall I think my mum did the right thing.

[Caddyshack]

thepeoplespal said:

Inheritance can be toxic if people allow it to be toxic.

My mum died a few weeks ago & my sister & step brother get what ever is left in the will after the equity release loan is paid off. For the help my step brother and his partner have given my mum, I couldn't see anyone more deserving. As for my sister, I got funds to go to University my sister never got, so it is evening up things, to my mind.

I could see that I, my brother & other step brother and step sister could all take the hump, but overall I think my mum did the right thing.

That's a very grown up and sensible view though, many do not see it that way. Good on you though

[Tannedbaldhead]

When a friend of the family died the problem of an alcohol and drug addicted son squandering his inheritance was solved by buying him a flat, placing the flat in the joint names of his siblings but giving him tenure for life. On his death the flat shall pass on to his only child.
What I don't know is whether this arrangement was agreed to or delivered on a take it or leave it basis. What's more if it was a deal forced upon him the fact such a deal can be done in Scotland doesn't mean you could do the same South of the border.

Edited by Tannedbaldhead on Saturday 23 December 22:41

[schmalex]

schmalex said:

Breadvan72 said:

hajaba123 said:

Honourable if it is this, or is the child trying to mak3 sure there’s something left for them.....?

I suspect the latter. Inheritance is so toxic and distorting.

No. The child wouldn’t be interested in any of it. The child would prefer that the beneficiary spent the money wisely during their retirement rather than squandering it on toys that they can’t afford as the beneficiary didn’t have the forethought to invest in a pension during their working life

Thinking about it, perhaps “preventing” was the wrong word to use. It’s more about ensuring any inheritance doesn’t get squandered on toys, as is highly likely, and is stewarded accordingly to ensure that it is spent in an appropriate manner.