Given the increase in blended families, the term `sideways disinheritance’ is cropping up more frequently. What does it mean?
Sideways disinheritance occurs when someone with children remarries after the death of their partner or spouse. They can easily, and completely unintentionally, disinherit their children.
How does sideways disinheritance happen?
Most couples like to keep things straightforward when making their Wills. They simply leave everything to their spouse or partner. You may have done this yourself.
It’s understandable. After you’ve gone, you want to make sure your partner can continue to live in the family home. You probably assume that when your partner dies, their assets — including the property — will be passed on to your children.
But what happens if your spouse or partner later remarries? This is when sideways disinheritance can become a problem for your children.
An example of sideways disinheritance
Let’s imagine a married couple called John and Susan. They’ve each made Mirror Wills which leave everything to each other. After the second partner’s death, they want their assets to pass to their son.
After Susan dies, John remarries. He and his new wife Hannah live in John’s house. John’s remarriage has revoked his previous Will. He’s aware of this, so John and Hannah make new Mirror Wills.
Again, they leave everything to each other. This time, their assets are split between John’s son and Hannah’s two daughters from her previous marriage.
When John dies, everything passes to Hannah. She then makes a new Will, leaving everything to her two daughters.
Effectively, John’s entire estate has passed sideways into a new family. His son has been disinherited.
How to avoid sideways disinheritance
In reality, many people simply forget to make a new Will when they remarry. They don’t get around to it — or they trust the new partner to do the right thing by children from a previous relationship.
Unfortunately, you can’t guarantee this. Sideways disinheritance is a major cause of Will disputes — and with family relationships becoming increasingly complex, it can happen to anyone.
You want to provide for your new spouse. You also want to leave assets to your children. What’s the best way to safeguard your wishes?
Property Protection Trust
One option is to include a Property Protection Trust in your Will. It allows a share of your property to be ring-fenced, held and protected within the Trust, so no one else can make a claim to it.
The person you name as your Life Tenant — your spouse or partner, for example — can continue to live in the property for the rest of their life or, if you choose, until they remarry.
Once your spouse dies or remarries, the assets held in the Trust pass to your children.
A PPT also protects your share of the property against assessment for means-tested fees. It can’t be taken into account for care home fees, for example.
If you’re worried about sideways disinheritance and want to make sure your children’s inheritance is safely protected, get in touch. You’ll get clear, jargon-free advice — and if you wish, we can help you set up a Property Protection Trust.