Prevent the family wasting inheritance

Q I am 74 and have made a will that splits 70% between two family members and 30% between three grandchildren. As my family are very poor at budgeting or saving for the future, I hope you can help me make the right decision.

I was wondering if I could set up a new will designating a third of their inheritance to each person and twothirds to long-term investments and/ or super, so that the funds can give them an ongoing income for their later years. I prefer this outcome as I do not want the family to have shortterm access to all the funds, shares and property that have taken me a lifetime to accumulate.

I am delighted to get your email, Barbara. Too few of us have prepared an up-todate will, let alone have thought deeply about the issue.

You could certainly give your views about limited short-term access to funds in your will but, while I am not a lawyer, I don’t see how these views would be enforceable. A suggestion I have for you is to put the longer-term money into a testamentary trust, established on your death. You could direct, via your will, money into these trusts.

We have these in our wills. It allows my wife and I to ensure we care for those we leave behind and avoid the often poor impact of a lump sum that gets spent or lost. A trust can distribute investment income only, it can provide money as a loan to repay a mortgage, or it can distribute capital as you feel appropriate, that is, you could release up to 30% on your passing, then the balance at set times in the future. Well worth having a chat with your solicitor.