Terry & Gaynor have been married for 45 years and have two children; Christine and John. They own a property as beneficial joint tenants and each have investments totalling £180,000 with their financial planner.
They have a simple Will leaving everything to each other with gift over to the children. Terry was the primary carer for Gaynor who was diagnosed with Parkinson’s several years ago.
Christine and John have registered a LPA for Health & Welfare and Property & Finances for their Mother. However, Tewrry was recently diagnosed with a terminal illness and has been given less than six months to live. Both Terry & Gaynor are now being forced into a local Residential Care Home.
We were asked to review the Wills and recommended a Unilateral Severance of Tenancy which is constructed under s.36 (2) of the Law of Property Act 1925. Essentially, this facilitates the removal of 50% of the equitable ownership of property from passing by survivorship to Gaynor and being exposed to Care Costs.
Within the framework of the revised Will we included a Discretionary Trust of Residue so that the heirs to the estate have further protection from losing their own inheritance to third party threats such as care costs, sideways disinheritance and divorce lawyers.