Amending Wills After Receiving Inheritance Money

Mrs. Johnson had recently inherited a significant sum of money, and she was seeking guidance on how to structure their Wills to ensure the preservation of these funds for future generations while still allowing the surviving spouse access during their lifetime.

The primary goal of the Johnsons was to create a structure that would ring fence the inherited funds for the benefit of their children and future descendants. However, they also wanted to strike a balance by providing the surviving spouse, Mr. Johnson, with access to the funds for financial security during his lifetime.

Understanding the complexity of the client's objectives and the desire for flexibility, our team proposed the use of a Flexible Life Interest Trust (FLIT) as a strategic solution to achieve their goals.

This structure provided the flexibility to allocate income to Mr. Johnson while holding the remaining funds in a discretionary trust for the benefit of their children and future generations after his death.

To provide an additional layer of control and guidance, we assisted the Johnsons in drafting a Letter of Wishes. This document allowed them to express their intentions and preferences regarding the use of the funds held in the discretionary trust.

The Johnsons' estate plan now incorporates a strategic FLIT structure that achieves their goals of ring fencing inherited wealth for future generations while providing financial security for the surviving spouse during their lifetime. The Letter of Wishes offers a tool for ongoing guidance and control over the use of the discretionary trust funds, ensuring that the family's values are preserved for generations to come.