Hi, I'm hoping I can get some informal advice prior to seeing a solicitor to redo my will.
I am a 47 year old father to two boys, aged 11 and 9. My wife passed away last year and I have a major health issue whereby my maximum life expectancy is likely to be a maximum of another 5 years or so. I have a house worth around £550K with a outstanding mortgage of £160K. I have my own pension pot in a SIPP of £600K and have inherited my wife's SIPP of £300K. I also have cash and other investments of around £150K.
As things stand, I am still employed and should I die whilst still employed I would expect a death in service payment to be made which would be very significant, slightly in excess of £1M. I understand that this death in service policy is written in trust.
In terms of the future arrangements for my children, my sister is my appointed Guardian and the boys will go and live with her and her family. I am sure my question is a relatively common one and my wishes also are unlikely to be out of the ordinary.
What I want to achieve is the best structure possible to hold the money for the boys until they reach what I would consider to be an age where they *may* be sensible enough to realise they have an opportunity to set themselves up for life and not go out and blow it all on fast living. Obviously I am also looking to do this in a way that would be as tax efficient as possible.
Some of the money would need to be paid out to my sister on an annual basis for the boys upkeep. I also envisage the boys receiving some form of small lump sums at age 18, 21 and then to finally take their full share at no earlier than age 25.
Is this achievable or are there going to be inevitable IHT and Income Tax consequences here?
Thanks for any help in advance.
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