Food Or Drink - Clue A Painful Hip
Food & Drink0 min ago
Should I put my house in trust?
Hi,
I am a 49yr old divorced woman. I have a life insurance which would pay out to my ex if I were to die which was taken out when we were together, but now I want it changed so that my children would be beneficaries. That's seems to be quite straightforward but the insurance company suggested that instead of changing the life cover policy I could put my house(ex husband name not on mortgage or deeds) in trust for my children. They have sent me two differrent forms and I have to decide on one or the other. The changing of the life cover seems the easier option as I dont know the implications of putting a house in trust. I am currently single. I've read somewhere that putting a house in trust may cause problems in the future if I wanted to sell the house. Would be very gateful for any advice or opinions on this matter.
I am a 49yr old divorced woman. I have a life insurance which would pay out to my ex if I were to die which was taken out when we were together, but now I want it changed so that my children would be beneficaries. That's seems to be quite straightforward but the insurance company suggested that instead of changing the life cover policy I could put my house(ex husband name not on mortgage or deeds) in trust for my children. They have sent me two differrent forms and I have to decide on one or the other. The changing of the life cover seems the easier option as I dont know the implications of putting a house in trust. I am currently single. I've read somewhere that putting a house in trust may cause problems in the future if I wanted to sell the house. Would be very gateful for any advice or opinions on this matter.
Answers
1 to 7 of 7
Best Answer
No best answer has yet been selected by strude. Once a best answer has been selected, it will be shown here.
For more on marking an answer as the "Best Answer", please visit our FAQ.
Why do you want to put your house in trust for your children?
If you want your children to share the house should you die – you can write your Will to this effect; that the house is then placed in trust until they reach some specified age.
49 isn’t that old – my crystal ball says that you will meet someone to share your life and by the time you die, your kids will have grown and have lives of their own.
As you say, putting the house in trust could impact your ability to do as you wish with the property.
I think that the insurance company will make some money through setting up the trust arrangements – and that this is their sole reason for their recommendation.
If you want your children to share the house should you die – you can write your Will to this effect; that the house is then placed in trust until they reach some specified age.
49 isn’t that old – my crystal ball says that you will meet someone to share your life and by the time you die, your kids will have grown and have lives of their own.
As you say, putting the house in trust could impact your ability to do as you wish with the property.
I think that the insurance company will make some money through setting up the trust arrangements – and that this is their sole reason for their recommendation.
Based on your response – I would make sure that your ex does not benefit from the life policy (if that is what you want). You should also update your Will (if you have one); divorce does not nullify a Will – but any provision therein for the former spouse is nullified.
So if you have not updated your Will since divorce and/or do not have a Will – I would recommend you make a Will so that your estate (money/possessions/property etc) is distributed as per your wishes should you die.
So if you have not updated your Will since divorce and/or do not have a Will – I would recommend you make a Will so that your estate (money/possessions/property etc) is distributed as per your wishes should you die.
1 to 7 of 7
