When it comes to estate planning, many people assume that having a standard Will is sufficient to ensure their assets pass to their intended beneficiaries.
However, standard Wills come with certain risks that can lead to unintended consequences, particularly in the case of sideways disinheritance. Without the appropriate safeguards, your loved ones could find themselves losing their inheritance due to circumstances beyond their control.
What is Sideways Disinheritance?
Sideways disinheritance occurs when an intended beneficiary of your estate does not ultimately receive their inheritance due to changes in family circumstances. The most common scenarios where this happens include:
Remarriage of a surviving spouse – If your spouse inherits your estate and later remarries, their new spouse may become entitled to part or all of their assets, which could include the inheritance meant for your children.
Divorce settlements – If your beneficiary goes through a divorce, their inherited assets may be considered as part of the divorce proceedings and could be lost to a former spouse.
Bankruptcy or financial difficulties – If a beneficiary inherits outright and later encounters financial hardship or bankruptcy, their inheritance could be used to settle debts.
How a Will Trust Can Help
A properly structured Will that includes a Will Trust can provide essential protection against these risks. Will Trusts are legal arrangements that safeguard assets for your intended beneficiaries while allowing flexibility for changing circumstances. Some key types of Will Trusts include:
Life Interest Trusts – This allows a surviving spouse to benefit from assets (such as income from investments or the right to live in the family home) while ensuring that the capital passes to your chosen beneficiaries after their death.
Discretionary Trusts – These provide flexibility by allowing trustees to manage and distribute assets in the best interests of your beneficiaries, protecting them from financial risks such as divorce, bankruptcy, or reckless spending.
Property Protection Trusts – Specifically designed to protect the family home, this type of trust ensures that your share of the property ultimately passes to your chosen heirs rather than being absorbed by a new spouse’s estate.
Why You Should Review Your Will
If you currently have a standard Will in place, it is worth reviewing it to ensure that it effectively protects your estate from sideways disinheritance. A Will Trust can offer peace of mind, ensuring that your assets are preserved for your loved ones, even if life circumstances change unexpectedly.
At Peritum Wills, we specialise in drafting comprehensive estate planning solutions tailored to your unique situation. Contact us today to discuss how a Will Trust can safeguard your family's future.
Protect your loved ones – ensure your Will does what you intend.
Information provided and any opinions expressed are for general guidance only and not personal to your circumstances, nor are they intended to provide specific advice. Please contact us for specific advice in your circumstances.
The Financial Conduct Authority does not regulate Taxation, Trust advice or Will writing.
Peritum Wills is not authorised or regulated to provide financial advice.
Tax laws are subject to change and taxation will vary depending on individual circumstances.
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