Hi,
Whilst my marriage continues on, it has been suggested that I future proof the inheritance from my Dad's estate in case that my marriage goes pear shape. My Dad is not yet deceased. I have no children of my own.
In my Dad's Will I will be a Tenant For Life in his home upon his passing. On my death, the property will revert to a nominated Trustee (Will Executor) who will then pass on the estate to my younger siblings. I will also receive money to pay for some upfront maintenance that will be needed to be done on the property. However, if Divorce does occur, I don't want this money to be considered in any Divorce settlement.
I have been told that the way to safeguard against this potential loss is for this money to go into a Family Trust, where I have no role (Trustee, Beneficiary etc)? If I have no role, this money can't then be classed as being part of my divisible assets?
Is this correct?
Alternatively, do we just ensure that the nominated Trustee does not include my wife or myself, and add a clause that the nominated Trustee will receive the money instead that will be used to pay for maintenance to the property?
The second option seems to make more sense, but who then pays tax on the potential earnings from this money? Will this become part of their own income, or will they needs to have a different TFN to attribute any interest back to the estate rather than themselves? Is this what a Family Trust is designed to do?
The third option is for the money to remain in the Estate until the maintenance is done. How long can the Estate of my Dad continue after his death?
Have I missed any other options or considerations?
Whilst my marriage continues on, it has been suggested that I future proof the inheritance from my Dad's estate in case that my marriage goes pear shape. My Dad is not yet deceased. I have no children of my own.
In my Dad's Will I will be a Tenant For Life in his home upon his passing. On my death, the property will revert to a nominated Trustee (Will Executor) who will then pass on the estate to my younger siblings. I will also receive money to pay for some upfront maintenance that will be needed to be done on the property. However, if Divorce does occur, I don't want this money to be considered in any Divorce settlement.
I have been told that the way to safeguard against this potential loss is for this money to go into a Family Trust, where I have no role (Trustee, Beneficiary etc)? If I have no role, this money can't then be classed as being part of my divisible assets?
Is this correct?
Alternatively, do we just ensure that the nominated Trustee does not include my wife or myself, and add a clause that the nominated Trustee will receive the money instead that will be used to pay for maintenance to the property?
The second option seems to make more sense, but who then pays tax on the potential earnings from this money? Will this become part of their own income, or will they needs to have a different TFN to attribute any interest back to the estate rather than themselves? Is this what a Family Trust is designed to do?
The third option is for the money to remain in the Estate until the maintenance is done. How long can the Estate of my Dad continue after his death?
Have I missed any other options or considerations?