Clarifying terms of a will to reflect 'advance payments'

[PinkDalek]

Deliberate Deprivation of Assets for State Benefits

won’t be an issue either – I hope it comes across in my posts that there is no hint of any hanky-panky or fiddling the system.

Yes that is clear and you'll note I mentioned that part in brackets deliberately, as an aside, and included should that potentially ever be applicable in these circumstances if Gifts are in play. So please don't think anyone is suggesting you are indulging in anything untoward.

I will research in more depth about IFLRODs ...

I have a form of words I've used in the past and can dig them out, if that assists, but although not Solicitor approved a couple of versions were sent to our solicitors for safe-keeping. Albeit many years ago.

Do, however, note that Clitheroekid, in a linked thread, talked about a simple promissory note. I don't know the difference and do not hold a form of wording for such a note, although there are versions available online which may or may not be acceptable.

It may well be that Clitheroekid will eventually be in the position to join this thread and it would be interesting to see what he says and maybe he'll be willing to come up with the appropriate wording, should that be needed by you and your family.

[BobbyD]

The total value of the estate is under the IHT limit.

Today's, December 13th's, or 2025's IHT limit? Including deceased spouse's unused allowances and family home exemption or in raw cash terms?

I wouldn't put my inheritance on those things remaining stable or better no matter who wins the election, and as far as I am aware there is happily no reason to suspect that this will need necessarily have a speedy resolution.

In this case grandfather has a son with both wealth and great generosity who has committed to covering care home costs.

…gifts

It's not a legal solution, or a legally binding solution, but perhaps the son could quietly be consulted on his willingness to guarantee the intention of his father's will by way of top up payments to those who might have been disadvantaged by the early payments, in order to save his father the potential distress of reworking his will? A solution which could be seen to benefit all three generations in terms of peace of mind, the satisfaction of having provided that peace of mind, and money respectively.

[TwmSionCati]

... I will research in more depth ... and discuss with family members.

Sorry to come to this late, but Grandfather’s will, with your original suggested wording in a codicil signed by him, will do fine.

The doctrine of advancement or hotchpot is well understood — it is “an accounting device used in cases where a testator has made, or contemplates making, large advances to individual beneficiaries, but does not wish these advances to alter the proportions in which he desires his estate to be ultimately enjoyed”*; and “A hotchpot clause in a will usually requires the personal representatives to take account of lifetime gifts made to the beneficiaries by the testator, when calculating the amount they are to receive under the terms of the will.”**

A lady of my acquaintance has made similar advances for similar purposes of similar amounts to her various beneficiaries, and intends to go on doing so: all allowed for in her will, in which the relevant clauses read:

4. MY TRUSTEES shall ... (c) divide my residuary estate into equal shares and pay [to B1 N1 shares, to B2 N2 shares, ...] ... PROVIDED: ... E. any amount advanced to [any one of B1, B2, ...] prior to my death (whether before or after the date of this Will) (calculated net of Inheritance Tax) is to be divided by the Retail Price Index for the month in which the advancement was made and then mutiplied by the Retail Price Index for the month of my death (having regard to any rebasing of the Index which might have occurred in the meantime) and the result shall be brought into account on a hotchpot basis when calculating the values of the shares of sub-clause (c) above.

Her will was written by a classy law firm and was appropriately expensive.

She’s also given all the beneficiaries copies of her will, so their expectations are realistic and they won’t fall to squabbling.

TSC

* J.F. Daykin ‘A note on the application of the doctrine of hotchpot’ in the Journal of the Institute of Actuaries 93 (1967), pp. 119-129
** http://uk.practicallaw.com/2-386-2472

[PinkDalek]

[Sorry to come to this late, but Grandfather’s will, with your original suggested wording in a codicil signed by him, will do fine. ...

We don't know if the existing Will already has a hotchpot clause nor how any codicil drafted by an amateur will impact on it. Further, if this route is to be taken the OP must ensure such a codicil is suitable entitled, specifically make reference to the original will, be signed by the testator and be witnessed at the time of signature etc.

I'm certain most solicitors asked to advise on a codicil would also wish to review the will in conjunction. Nowadays they'd probably seek to draft a new will for the testator.

The difficulty here is the OP doesn't wish to upset the grandfather 'with confusing documentation'. All of the documents mentioned so far would, I believe, involve the Grandfather's signature at the very least.