Will to a Rich Sibling

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RichInSpirit

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I was thinking about my will today or lack of a will.

While not exactly single, at the moment I would probably will to my parents or siblings.

But the thing is that I have a nice bit of debt on my property so the beneficary of my will might be presented with a double edged sword in outstanding debts and capital gains tax. But a brainwave hit me today :)
Leave everything to my richest (but not favourite) sibling.

It's mistaken logic I know, but....
 
Hi Rich in Spirit

Your logic is very much mistaken.

1) There is no Capital Gains on death. So you are not presenting your sibling with a CGT bill.

2) Your estate must pay off your debts first. You can't leave your home in positive equity to Johnny and your investment property in negative equity to Mary. The home would have to be sold to pay off the mortgage on the investment property.

3) Do you not have mortgage protection insurance? In the event of death, any outstanding mortgage on your home will be paid off.

4) You are probably not going to die for some time. By then, the debts may be substantially reduced.

5) Anyone can simply reject what is left to them. So if your estate is in net liabilities at the time of your debt, your brother will simply decline the legacy.

Brendan
 
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