A life interest trust is a relatively simple form of trust which allows you to provide that a beneficiary can have the benefit of an asset for their lifetime whilst also specifying who that asset should go to after their death. This type of trust can be set up during your lifetime or under the terms of your will and provides a measure of protection for your assets.
For example, if you left your half share of your home to your husband or wife in a life interest trust, they will be able to continue living at the property after your death and cannot be forced to leave or charged rent. The trust will also ensure that your husband or wife’s death, your share of the property will still go to your beneficiaries, for example your children.
The benefit of this type of trust is that if your husband or wife remarries or changes the terms of their will, your share of the property will still go to your beneficiaries. Also, if your husband or wife requires residential care, your share of the property cannot be taken into account to pay for their care fees and therefore it provides some protection to one half of the value of your home.
If you are interested in how this sort of arrangement may be of benefit to you, please do not hesitate to contact our experienced Private Client team on 0333 305 7777 or email@example.com.