Giving your home to a selected grand child.

Hi,
One of my older work mate wants his GRAND daughter to inherit their home.
He has one son. So no issues there. But there are three other grand sons.

What are the possible family troubles can they get into?
Can other sons challenge the will?
What happens if those children are under age? How expenses are paid?
What will happen if that grand daugther marries and divorces?

Probably @Terry_w has covered this somewhere

 

Can they adopt me?

The other grand kids will have valid reason to contest the Will. Does he want to give the others nothing at all, or something or equivalent value? Does he have well documented reasons?

 

I think it really depends on individual circumstances. Say if the three brothers are all HNWIs and the house to be inherited is worth 300k, in this case I don't think anyone will care.
If none of the four grand kids are particularly well off and none have a house, this arrangement will ruin everybody, even the granddaughter, as she will lose three brothers.
But the probate lawyers will be very happy.

 

Is it in these circumstances its best to give it away before death (while one is still of sound mind)?

 

Family provision claims
Legal Tip 50: Family Provision Claims Against Estates https://propertychat.com.au/communi...family-provision-claims-against-estates.2510/

Yes other sons and others could challenge the will. Grandchildren probably couldn't challenge under NSW law unless they were a dependant.

If the beneficiary is a minor the property will be held on trust for her. The will should set up how the expenses would be payable.
If the grand daughter divorces the property will be an asset of the marriage and possibly divvied up.

 

Best in what way and for who?

Giving away your assets is generally not in your best interest. But it could be done to avoid a family provision claim. In NSW it would have to be given away 3 years or more before death to avoid the claw back provisions.

But any transfer during life would result in stamp duty and be a CGT event.

 

That reason - but i didn't realise there was a 3 year window for claw backs.

Its disappointing (but reality in majority of cases) that people fight over money and it tears a family apart.

 

So these are the major issues:

 

Grand children cannot contest a will in NSW unless
1. They are named as beneficiaries in the will already
2. They were financially dependent on the deceased at some point in their life

@devank - similar issue happened in our family except a grand daughter coerced the deceased. Makes the family a mess, people don't speak, not recommended to ur work buddy unless everyone is so loaded that they don't care about inheritance.

 

I would suggest that if the testator has no moral obligations to any party, then he/she can leave their estate to whoever they want. The issue is not whether a party can challenge the terms of a will, it is whether such challenge will be successful

 

I hate this kind of story If grandpa wants to leave it to little Janie ..and has written so in his will when he is of sound mind..why the hell does anybody else get to challenge it.

I once asked our lawyer why do we need a will... we will be dead and it is seemingly. It worth the paper they are written on. His answer was "it keeps it out of the governments hands..that is about all it does".

 

Issue 1: Little Janie goes through few breakups. Family asset gets chopped each time.
Issue 2: Siblings little Johnny and little Jimmy may feel unfaired causing splits in the family. That wouldn't be really what grandpa wanted.

 

Just last week there was a post by someone whose father died without a will. They will now be potentially having to pay stamp duty and CGT because they want to change things different to the intestacy laws.

 

Duty of care comes into it right/wrong?

 

Issue 3. little Janie dies 31 days after grandpa
Issue 4. Janie sells the property and invests in a methlab

 

Not legally

 

OK, grey area right.....not sure about grandchildren, but inheritance a tricky business if not split equally, siblings/relatives assets and liabilities will be scrutinised.....a disaster not smart way to go.

Not something I would contemplate regardless.

 

Not a grey area.
There is testamentary freedom but there are also legislative restriction imposed on testators to make adequate provision to certain persons.

 

What happens in this case? Wouldn't her parents or siblings inherit the property?

 

I saw a issue recently where Dad left property to a son. Mum wasnt on the PPOR title and Dad transferred PPOR to son days prior to death. Dad dies. Mum dies within 28 days. Other family argue dad was trustee for mum (old Italians).... Court agrees. Dad held mums interest as a trustee for mums interest as a beneficiary (life interest AND otherwise) so transfer was void. They considered the 28 days irrelevant as mum would have acquired a beneficial interest of 100% and so Dads transfer wasnt valid.

Mum was left nothing by dad on death so all his actions within X years to give a son property are void. Son ordered to give the lot to mum.