JACK and Jill have been married for many years and each have two children from previous relationships.

They own their $2m home jointly and they each have substantial investments in their sole names.

They consider making wills to the effect that they leave the whole of their estates to each other and when the last of them pass, their will leaves their estate to all four children equally.

However, Jack is concerned that if he passes-away before Jill, she may enter into another relationship, which would jeopardise his children’s inheritance.

Jill is concerned that if she passes first, Jack may change his will and leave the whole of their combined estates to his children only.

They seek specialist advice and are informed that they can make wills that create “portable life interests” for each other, with a view to making proper arrangements for their surviving spouse, while protecting their children’s entitlements.

These wills allow the surviving spouse to continue to reside in the house as well as allowing them to relocate if they wish to do so.

Only upon the death of the surviving spouse is each parties’ half of the house gifted to their respective children.

In order for their wills to achieve these goals, they are advised that the joint ownership of their home needs to be “severed” and recorded as “tenants in common in equal shares”.

Jack is also concerned about his daughter’s marriage and does not want his son-in-law taking any of her inheritance.

Jack is advised that if his will creates a “testamentary trust” for his daughter, it can offer some protection in the event that his daughter’s relationship breaks down.

Jack is also concerned about his son’s business ventures and does not want creditors taking his inheritance.

He is advised that a testamentary trust may also provide protection against creditors.

Jack and Jill decide that in their circumstances, it is best for them to proceed with making testamentary trust wills which incorporate portable life interests.

Email Manny Wood, Principal Solicitor and Accredited Specialist in Wills and Estates at TB Law at manny@tblaw.net.au or call him on (02) 66 487 487.

This fictional column is only accurate at today’s date and is not legal advice.