Life Interest Trust
A life interest trust can be used with a combination of financial planning, lifetime giving and gifts on death. In this way, inheritance tax can be mitigated, and structure and security can be given to the assets.
Common reasons for creating a life interest trust
A life interest trust can allow you to protect your family home in relation to care home fees. People also choose to create this type of trust in order to give a beneficiary a regular income.
As well as deciding who should receive the life interest, you’ll need to consider who will receive the capital. A provision will need to be put in place for when the interest is to come to an end. An example of this would be when someone cohabits, remarries or dies, at least in relation to property.
Advantages of a life interest trust
You can pay a regular income to your beneficiaries (who will become known as the life tenant)
A person’s share of a property can be placed into the trust to protect it from potential financial assessments such as when they require care
It protect your beneficiaries, such as your children if your spouse were to remarry
Why is legal assistance recommended?
Trusts can be complex. Timing, wording, and individual circumstances are very significant when it comes to setting up a life interest trust.
A solicitor can help you with:
Working out which trust is best
Deciding what conditions to include
Determining whether you can save on taxes
Ensuring your trust doesn’t conflict with your will
Advising what to consider when it comes to appointing trustees
Get In Touch With Us
Discuss your situation with our experienced team. Our experts will get back to you as soon as possible.
