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Life Interest Trusts

29 October 2017

life interest trusts

Protecting my Children in my Will

The stereotypical nuclear family is no longer the norm.  So many people worry about protecting their assets for their children, if their spouse  remarries after their death.

If the worst should happen and you passed away leaving everything to your spouse, would you trust them to pass your estate on to your children when they died? Or might they leave it to a new partner or future children? A life interest trust is one way to resolve these questions

What if we have children together but also step children – How do we protect everyone?

Maybe you and you partner each have children from previous relationships? You may wish to protect your share of the joint assets for your own children. Your assets may become amalgamated with those of your new spouse, and then your children may lose out.

One way to protect beneficiaries, and to provide peace of mind, is to place assets into a Life Interest Trust.

What are Life Interest Trusts?

Life Interest Trusts are a mechanism whereby you can choose certain assets to be placed into Trust. The trust is for the benefit of the ‘Life Tenant’ during their lifetime.  These assets are being held on Trust for the true beneficiaries once the Life Tenant’s period of entitlement has come to an end.

So in essence you could protect your assets for your children by placing them into a Life Interest Trust. You can make the children the ultimate beneficiaries, whilst giving your spouse the right to access and use those assets as necessary during their lifetime to make sure they are financially comfortable.

Upon the death of your spouse, those assets held under the Trust would then pass to the ultimate beneficiaries. This would happen irrespective of any terms of your spouse’s Will or any claim by their new partner.

If you feel that you may benefit from a Life Interest Trust, or would simply like to talk through your circumstances to see if you should consider setting a Trust up in your Will then contact one of our experienced and friendly Solicitors today on 0800 389 7039. Alternatively you can visit our wills and probate services page here or complete the form linked here and we will call you back.

 

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