The client, a semi-retired nurse residing between England and Sierra Leone, sought advice on succession planning for two mortgaged properties in Reading. One property is let under lender permission, with the mortgage due to conclude within five years; the other is a buy-to-let with eight years remaining on the term.
The client expressed a desire to place both properties in trust for the benefit of her grandchildren. While she maintains a close relationship with both sons, she has greater confidence in one son’s ability to manage the properties, citing his prior involvement and repayment of a personal loan. The other son has not yet sourced a property or mortgage, and has made demands for financial support.
The client’s intention is to ensure the properties are ringfenced for future generations, with clear instructions for management and distribution.
The properties are subject to existing mortgage arrangements, and placing them in trust may require lender consent. The client’s preference for one son over the other raises potential risks of future claims under the Inheritance (Provision for Family and Dependants) Act 1975.
Concerns were raised about undue influence, given the presence of one son during the consultation and the adviser’s personal connection to him.
It was advised that a Will may be more appropriate than a trust, given the mortgage status and the need for lender approval. The client could appoint executors and specify beneficiaries, including both sons and grandchildren.
To mitigate future disputes, the client was advised to consider a Letter of Wishes and to seek independent legal advice. She agreed to reflect on the advice and confirmed her intention to proceed with a Will, naming her preferred executor and outlining her proposed asset distribution.
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