TENANCY IN COMMON

I recently visited a retired couple who were recommended to me by an existing client.

Their main asset was the family home and some savings which had been built up over the years.

The clients did have existing Wills but after a conversation with their friends, they were concerned that they didn't include the protection for their family that they required. Their main concern was should one of them require Long Term Care in the future that as much as possible of their assets are passed to their children but also that the surviving spouse is looked after for the rest of their lifetime.

Like many people the clients owned their property jointly which would mean when the first partner dies it would automatically pass to the survivor. However,it is possible to split the ownership of the property typically half each. This is known as tenancy in common which allows that on first death half share of the property is transferred to a trust for the children but giving the surviving partner the right to live in the property for their lifetime.

We rewrote the Wills for the clients incorporating a Life Interest Trust in respect of the share of the family home for the benefit of the surviving spouse for his or her lifetime and finally passing to the children. We also completed the land registry documentation to ensure the property was owned correctly to allow this to happen. The remaining savings pass to the surviving spouse then finally to the children.

The clients are now confident that their family will still benefit from a good proportion of their lifetime savings.