Life Interest Trusts can be a suitable option for couples wanting to provide peace of mind and future financial security for each other as well as loved ones. With a Life Interest Trust, you can ensure your spouse is safeguarded during his or her lifetime and that your assets are kept safe for the next generation.
There is no way of knowing what’s around the corner, and Life Interest Trusts provide you with the means to look after loved ones after you’ve gone.
The assets of a Life Interest Trust are not included in any assessments made for the payment of care costs. Couples who wish to create a Life Interest Trust can do so in their lifetime or in their Will, placing their house and other assets into the Trust and naming the surviving spouse as a Life Tenant plus stating any income entitlement.
As the survivor of such a Trust you have security for the rest of your life, a roof over your head and the reassurance that your spouse’s half of the house is protected and its worth held for the future Beneficiaries. This means that even if you move into a care home at a later date and the house is sold, only your share of the property will go towards the fees.
Life Interest Trusts are designed to be flexible, allowing you or your surviving spouse the option to move house or to access capital if needed at a later date.
Types Of Life Interest Trusts
Also called Interest In Possession Trusts, Life Interest Trusts can be established in your lifetime or in your Will.
There are often a few Beneficiaries of the Trust:
- The individual, usually the surviving spouse, who can use the asset, usually a house, or get an income from the Trust or both
- The longer-term Beneficiaries of the Trust, often the children
Life Interest Trusts are not only set up by couples who want to safeguard at least part of their house for loved ones and avoid having to use all the proceeds from the sale of the house should funds be needed to pay for nursing care. These Trusts are also created for numerous other reasons, for example, by individuals who have remarried and want to ensure their assets pass onto their children or by those who think their spouse may remarry after their death and want to ensure loved ones get their assets and not the new family.
How Our Family Lawyers Can Help
Life Interest Trusts can provide you with the reassurance and certainty that your spouse and loved ones will be cared for after you’ve gone. This is why it’s vital you create your Life Interest Trust in a way that covers your specific wishes for the future, whether this is done in your lifetime or detailed in your Will.
We have the experience and legal knowledge to advise you on every aspect of Life Interest Trusts including tax implications, and our solicitors can help you create your Trust and provide expert support to your Trustees in its management.
As with all Trusts, the Trustees are key and you should only choose those individuals you have complete confidence in to carry out your wishes. Our Trusts solicitors are also able to act as Professional Trustees if this is a suitable option for you.
Make an enquiry today
For further advice on the founding and management of Life Interest Trusts, please contact our Family Law team at our Bartletts Solicitors Liverpool office – Marldon Chambers, 30 North John Street, Liverpool, L2 9QN or our Hoole office at Martins Bank Chambers, 31 Hoole Road, Chester CH2 3NF.
You can contact our specialist solicitors at our Liverpool, Chester or Wrexham offices or email advice@bartletts.co.uk.
Alternatively, you can Make An Online Enquiry and one of our team will be in touch with you as soon as possible.
