Making a will - allocation of assets upon croaking..
Discussion
I appreciate this is a very personal topic, and I'm perhaps being rather nosey.
However, my wife and I are mid-30's, and at a stage of life whereby we're planning significantly for the future.
We have no children, nor any plans to change that.
Obviously life can alter it's course, and due reassessment will be necessary along the way, but we can only plan for what we expect at any given time.
With our predictions and plans, It's quite likely that there will be a reasonable bucket of assets left when the two of us pass.
So, without kids, how would you plan your will?
I've a brother that I have practically nothing to do with. I have a sister in law who has 4 teenage kids, who we care about greatly. We'll help with their education costs in the medium term, but of course, with any luck, by the time we die, they'll be close to retirement too, so it may not be much use to them.
They may have kids of their own, but living thousands of miles away, as fairly distant relatives, I'm not sure how much we will have to do with them in reality.
I'm passionate about my career, but the barriers to entry are financially beyond many, so I would love to set up a scholarship trust to provide some income to help some talented & motivated applicants who would otherwise be unable to enter the field. That said, I've no idea of the legal/logistical path to setting this up.
My wife is passionate about mental health awareness, so that would also be something we'd love to give to. That said (and this is mostly heresay), I understand most charities seem to be very inefficient with cash. Is it plausible to set something up which would provide something tangible like contributions to facilities or a budget for physical supplies on a monthly budget?
Basically, can you legally stipulate how it is spent, rather than just general cash in the pot?
Any insight or ideas would be most welcome. There are always many ways to skin the cat..
However, my wife and I are mid-30's, and at a stage of life whereby we're planning significantly for the future.
We have no children, nor any plans to change that.
Obviously life can alter it's course, and due reassessment will be necessary along the way, but we can only plan for what we expect at any given time.
With our predictions and plans, It's quite likely that there will be a reasonable bucket of assets left when the two of us pass.
So, without kids, how would you plan your will?
I've a brother that I have practically nothing to do with. I have a sister in law who has 4 teenage kids, who we care about greatly. We'll help with their education costs in the medium term, but of course, with any luck, by the time we die, they'll be close to retirement too, so it may not be much use to them.
They may have kids of their own, but living thousands of miles away, as fairly distant relatives, I'm not sure how much we will have to do with them in reality.
I'm passionate about my career, but the barriers to entry are financially beyond many, so I would love to set up a scholarship trust to provide some income to help some talented & motivated applicants who would otherwise be unable to enter the field. That said, I've no idea of the legal/logistical path to setting this up.
My wife is passionate about mental health awareness, so that would also be something we'd love to give to. That said (and this is mostly heresay), I understand most charities seem to be very inefficient with cash. Is it plausible to set something up which would provide something tangible like contributions to facilities or a budget for physical supplies on a monthly budget?
Basically, can you legally stipulate how it is spent, rather than just general cash in the pot?
Any insight or ideas would be most welcome. There are always many ways to skin the cat..
ClaphamGT3 said:
You have answered your own question. To have any real degree of control, you would need to establish some form of trust with specific purposes to direct the allocation of money.
This area is reasonably complex and I suggest that you speak to a solicitor specialising in trusts
Thanks for that. I've no problem instructing solicitors. I'm merely trying to find out what is feasible.This area is reasonably complex and I suggest that you speak to a solicitor specialising in trusts
desolate said:
A trust can achieve want you want but the endowment would have to be pretty significant to justify the costs.
Well into 7 figures I would have thought.
This was my primary concern. Part of the problem is that while the endowment may be significant enough to justify the costs, I won't know that it will be until I'm dead, or not far off. Well into 7 figures I would have thought.
If I already had an amount set aside for just that purpose, then I'd have no reservations setting it up now. In my instance, that's not the case. I'm not planning on altering my lifestyle for that purpose, either; I'm thinking of it as a 'what's left over' proposition.
Testaburger said:
This was my primary concern. Part of the problem is that while the endowment may be significant enough to justify the costs, I won't know that it will be until I'm dead, or not far off.
If I already had an amount set aside for just that purpose, then I'd have no reservations setting it up now. In my instance, that's not the case. I'm not planning on altering my lifestyle for that purpose, either; I'm thinking of it as a 'what's left over' proposition.
It's a difficult one and definitely needs proper advice. Obviously if you leave it until you snuff it then there is IHT.If I already had an amount set aside for just that purpose, then I'd have no reservations setting it up now. In my instance, that's not the case. I'm not planning on altering my lifestyle for that purpose, either; I'm thinking of it as a 'what's left over' proposition.
You might find that there is an existing trust that you can give to, with an appropriate agreement in place beforehand so that the trustees agree on what your pot goes to.
My OH is a child psychiatrist (NHS) and I'm fairly sure they have some sort of fund at her clinic to help out with stuff that falls outside NHS funding. I'm not sure how big or what it covers but I'm sure it does do things like pay for transport for kids who have trouble getting to appointments because of financial need.
Oh and good on you for thinking of benefiting society like this. :thumbs:
My OH is a child psychiatrist (NHS) and I'm fairly sure they have some sort of fund at her clinic to help out with stuff that falls outside NHS funding. I'm not sure how big or what it covers but I'm sure it does do things like pay for transport for kids who have trouble getting to appointments because of financial need.
Oh and good on you for thinking of benefiting society like this. :thumbs:
We’ve been through this and you may be over thinking it depending on how big the pot is.
When we were younger, after the “all to each other” on single death we drew up a list of people and just shared it out, but for children we left it to their parents with a request that it’s used for the good of the children. It’s not binding but it was no more than a backstop as we had no intention of departing, and haven’t. As we got older, so did the kids, and now they’re old enough to be named.
Why I wouldn’t be too prescriptive is what you think they might need, certainly a number years out, may be totally wrong. We gave my niece and nephew a slug of cash when they were 21 ‘to spend wisely on their career or home’. They both respected that but did very different things. My Aunt left an education trust for her descendents and it’s got stupid in costs and the children and grand children are taking “educational holidays” to try and spend it. It’s now 8n the process of being wound up.
Just plan a couple of years out, you can change your will whenever, and when you can, look after those closest to you while you’re alive to see the rewards.
When we were younger, after the “all to each other” on single death we drew up a list of people and just shared it out, but for children we left it to their parents with a request that it’s used for the good of the children. It’s not binding but it was no more than a backstop as we had no intention of departing, and haven’t. As we got older, so did the kids, and now they’re old enough to be named.
Why I wouldn’t be too prescriptive is what you think they might need, certainly a number years out, may be totally wrong. We gave my niece and nephew a slug of cash when they were 21 ‘to spend wisely on their career or home’. They both respected that but did very different things. My Aunt left an education trust for her descendents and it’s got stupid in costs and the children and grand children are taking “educational holidays” to try and spend it. It’s now 8n the process of being wound up.
Just plan a couple of years out, you can change your will whenever, and when you can, look after those closest to you while you’re alive to see the rewards.
If you’re serious about philanthropy then set up a charitable foundation and choose what you want to support. Doesn’t have to be expensive and has the tax breaks for money you give now plus outside IHT when you snuff it.
See the George Soros thread where the PH right-wing nut jobs squeal about his foundation because they don’t like how the money is used!
See the George Soros thread where the PH right-wing nut jobs squeal about his foundation because they don’t like how the money is used!
Thanks for some very useful pointers.
Toolateforaname - finding an existing trust that suits our wishes sounds like a very viable option. I hadn't thought of that (clearly!). We'll undoubtedly enjoy the research there. Much obliged.
Heres Johnny
I fully accept what you're saying. If we were to snuff it soon, we have a rough plan that we're comfortable with. That will be duly updated as time passes and circumstances change.
I know I'm overthinking it, or certainly premature, but we're trying to ascertain what is viable when we both pass at a hopefully normal age. In reality, there won't be family with which we'll wish the whole lot to. As mentioned, there are 4 teenage nieces/nephews on my wife's side. Hopefully we'll die when they are retired, so it won't be much use there. I think we can make more of a difference to them in the medium term; things like help with university or help with home buying.
Roman
Thanks for your suggestion. I'll seek professional advice here, but a charitable foundation sounds like a good 'basket' to leave assets to, outside of IHT - and from there, stuff can be passed around to various charitable causes. Is that a reasonable précis?
Again, I'm very grateful for all of the suggestions. It's plenty to keep me going.
Toolateforaname - finding an existing trust that suits our wishes sounds like a very viable option. I hadn't thought of that (clearly!). We'll undoubtedly enjoy the research there. Much obliged.
Heres Johnny
I fully accept what you're saying. If we were to snuff it soon, we have a rough plan that we're comfortable with. That will be duly updated as time passes and circumstances change.
I know I'm overthinking it, or certainly premature, but we're trying to ascertain what is viable when we both pass at a hopefully normal age. In reality, there won't be family with which we'll wish the whole lot to. As mentioned, there are 4 teenage nieces/nephews on my wife's side. Hopefully we'll die when they are retired, so it won't be much use there. I think we can make more of a difference to them in the medium term; things like help with university or help with home buying.
Roman
Thanks for your suggestion. I'll seek professional advice here, but a charitable foundation sounds like a good 'basket' to leave assets to, outside of IHT - and from there, stuff can be passed around to various charitable causes. Is that a reasonable précis?
Again, I'm very grateful for all of the suggestions. It's plenty to keep me going.
bw1981 said:
Why not just plan to spend it all? If you have no kids it’s not irresponsible. I would like to set my children up before I croak and maybe help a few people and causes, but plan on rinsing the rest on having a good time in retirement.
Don't get me wrong, I'm not planning on sacrificing my lifestyle for this. If I knew when that day would come, I wouldn't have enough left to pay the undertaker! I just want to figure out what to do with what's left over.I plan on retiring in my early 50's. I know (in today's money) what I want in the kitty to achieve my desired lifestyle. This is using a safe withdrawal rate strategy that I'm comfortable with.
With such a long retirement horizon, it's fair to assume that the first 20-25 years will have the highest financial demand. After that, I anticipate my spending going down, but it's very hard to predict. It's quite likely the pot increases in value, particularly in old age.
I have no moral qualms about spaffing the lot, but I need to be sensible at the planning stage. The way the maths works out for me, planning on a 35+ year retirement; is that on average, the value of the kitty doesn't go down. As mentioned, it's likely to rise when my spending habits recede. Using that formula, I've an amount to work towards which will provide me a nice lifestyle.
I suppose when the financial demands reduce in old age, assuming I'm still compus, I can make more concrete decisions and perhaps even action them.
I should add that am on track to receive zero state pension. I may buy some credits for previous years, to get to the 10 year credit point, but in reality I don't expect anything from the state by the time I get there.
Testaburger said:
Thanks for some very useful pointers.
Roman
Thanks for your suggestion. I'll seek professional advice here, but a charitable foundation sounds like a good 'basket' to leave assets to, outside of IHT - and from there, stuff can be passed around to various charitable causes. Is that a reasonable précis?
I would say so!Roman
Thanks for your suggestion. I'll seek professional advice here, but a charitable foundation sounds like a good 'basket' to leave assets to, outside of IHT - and from there, stuff can be passed around to various charitable causes. Is that a reasonable précis?
Testaburger said:
I appreciate this is a very personal topic, and I'm perhaps being rather nosey.
My wife is passionate about mental health awareness, so that would also be something we'd love to give to. That said (and this is mostly heresay), I understand most charities seem to be very inefficient with cash. Is it plausible to set something up which would provide something tangible like contributions to facilities or a budget for physical supplies on a monthly budget?
I hope you can help later on in life on that side and applaud you/wife for thinking this way.My wife is passionate about mental health awareness, so that would also be something we'd love to give to. That said (and this is mostly heresay), I understand most charities seem to be very inefficient with cash. Is it plausible to set something up which would provide something tangible like contributions to facilities or a budget for physical supplies on a monthly budget?
Like most people we bumble along not knowing much about mental health. We as a family had first hand dealings and still do with a mental health issue which hit last year - if you get the chance to help with Children's Mental health I can only urge you to do so as I strongly believe this will also help them as they get older as well.
Edited by superlightr on Tuesday 12th June 23:28
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