WILLS – THE LIFE TENANCY ISSUE

Do you have children from a previous marriage that you wish to benefit from your estate but you still want your wife to be "looked after"? This is becoming more common and is creating very interesting if not unusual circumstances to be dealt with. Often a Will is worded that the children benefit from the estate and the wife is allowed to stay in the matrimonial home until she either dies, re-marries or decides to move out, with the wife paying the up-keep of the property. Sounds simple. Well, its not. The Will must be carefully worded and possibly split into two sections. The Estate, excluding the matrimonial home, to be divided up as at the date of death (ASAP) and the matrimonial home to be divided among the survivors of the children (or their children’s children) as at the end of the life tenancy. The matrimonial home can be all included in the estate, however this runs a great risk if your wife is to live for a period of time, whereas a child may die prior to benefiting from your will, which effectively leaves part of your estate to your child’s deceased estate which may then be distributed to a spouse who was never intended to receive the gift. Bearing in mind the length of time your wife is likely to live will depend on your choice of when the matrimonial home shall be included in your estate. Nicole Judge nicolej@gells.com.au

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