Are there any downsides to doing this?
As with many estate planning measures there can be unintended consequences which you need to be aware and informed of so you can decide whether these trust Wills are the right way forward for you.
• If you have a high-net-worth estate with lots of liquid assets it is likely that this type of arrangement will be less beneficial to you as you will have other funds available to be used up in the settlement of third-party claims if left to your spouse/civil partner or cohabitee.
• If you change your ownership to tenants in common at the land registry, it is likely that a Grant of Representation will be needed to deal with the first to die’s estate which might not otherwise have been required.
• As a trust is created, there will be matters to deal with after the death of the first person, such as trust registration, trust management and administration and possible tax implications for inheritance tax, income tax and capital gains tax purposes.
We can discuss with you whether this option is right for you and the pros and cons as applicable to your circumstances.