When Is A Life Interest Trust Suitable And How Does It Work?
Reasons to choose Wilson Browne
When people think about making a Will, their main goal is often to make sure their loved ones are looked after when they have passed away.
However, for some families, a standard Will may not provide enough protection. This is where a Life Interest Trust Will can be a useful option.
A Life Interest Trust can allow a surviving spouse or partner to continue living in the family home or benefit from certain assets during their lifetime, while helping to ensure that those assets eventually pass to the people the deceased intended.
Below are some of the most common reasons people choose this type of Will:-
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Blended families
If you have children from a previous relationship, you may want to make sure they ultimately inherit your share of the family assets.
A Life Interest Trust can allow your spouse or partner to continue living in the property/benefitting from your assets after your death, while protecting your share for your children in the future.
Protecting your share of the family home
Many couples own their home together. With the right planning, your share of the property can be placed into a trust when you die.
This can help ensure that your share is preserved for your chosen beneficiaries rather than becoming part of someone else’s estate on your death.
Concerns about future care fees
One of the questions often asked is whether a family’s home could be affected by care home fees in the future.
While every situation is different and there are no guarantees, a Life Interest Trust can help ensure that the share of the property belonging to the person who has died is not automatically included in the surviving spouse’s estate.
Protecting against changing circumstances
Life can change unexpectedly. A surviving spouse may remarry, enter a new relationship, or make a new Will. A Life Interest Trust can provide peace of mind by ring-fencing for your children or other beneficiaries.
Providing security for a loved one
Importantly, these trusts are not just about protecting assets. They can also provide financial security for a surviving spouse or partner, allowing them to remain in their home/continue benefitting from assets during their lifetime.
Is a Life Interest Trust Will right for you?
Every family is different. A Life Interest Trust Will is not the right solution for everyone, but it can be particularly useful for blended families, homeowners, and those who want to balance protecting their assets with providing for loved ones.
Taking advice from Wilson Browne Solicitors can help ensure your Will reflects your wishes and gives your family the protection they need.
Life interest trusts can be a valuable estate planning tool, offering a balance between providing for loved ones during their lifetime and preserving assets for future generations. However, every family’s circumstances are different, and it is important to ensure that any trust arrangement is tailored to your specific objectives and tax position.
Our Private Client team can advise on whether a life interest trust is appropriate for your situation, explain the legal and practical implications, and assist with the creation, administration and ongoing review of trusts. If you would like to discuss your estate planning options, please get in touch with one of our experienced specialists.
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Jules Burditt
Legal Practitioner
Jules is a Legal Practitioner in the Private Client team at our Northampton office. She assists the team on a variety of matters including Wills, Lasting Powers of Attorney and Estates. Jules is also a member of the Charities team dealing with Charity Grants, Charity…