If you are married or in a civil partnership and have children or grandchildren, part but not all of your estate will go to them on your death if you are personally worth more than £270,000. The Intestacy Rules state that in this circumstance, the first £270,000 (including your home) goes to your spouse, as well as any personal item that you own. Anything over this limit is split:
- Half to your spouse/civil partner
- Half equally between all of your children
Therefore, this can result in your children part owning your house whilst your spouse/civil partner is still living there. If there is a family disagreement or one of your children get into financial difficulty (such as a divorce or debt) then there is a genuine risk that the house that your spouse/civil partner is living in could be sold whilst your spouse is still living in it.