Protecting your home and loved ones with a life interest trust
If you have children from a previous relationship and are now in a new partnership, planning your will can feel particularly complex. Many people want to ensure their partner can continue living in the family home after their death, while also protecting their children’s inheritance for the future.
Including a life interest trust in your will could help you achieve this balance and provide reassurance for everyone involved.
What is a life interest trust?
A life interest trust is where you give a chosen person – often a spouse or partner – the right to live in, or benefit from, your share of a property for their lifetime. This person is known as the ‘life tenant’.
When the life interest comes to an end, your share of the property then passes to the beneficiaries you have chosen, such as your children. This ensures your assets ultimately go where you intend.
Do life interest trusts only apply to jointly owned property?
No. A life interest trust can be used for:
- Property owned solely in your name
- Property owned jointly with someone else
It is a flexible solution that can be adapted to different ownership arrangements.
Can a life interest trust include assets other than the family home?
Yes. In addition to your main residence, a life interest trust can sometimes include:
- Other properties
- Certain investments or financial assets
Our solicitors can guide you through the best options for your circumstances.
Is a life interest trust only for married couples?
No. Life interest trusts are not limited to married couples or civil partners. They can be suitable for:
- Unmarried couples
- Blended families
- Friends or other family members
- Situations where someone lives in a property owned by another person
This makes them particularly useful for modern family arrangements.
What are the benefits of a life interest trust?
A life interest trust can:
- Allow your partner to remain in your home for as long as they need it
- Protect your share of the property for your chosen beneficiaries, such as your children
- Reduce the risk of your inheritance passing elsewhere unintentionally
If your share of a property were left outright to a survivor, it could be affected by factors such as:
- A new relationship or remarriage
- Changes to their own Will
- Financial difficulties or bankruptcy
- The need to fund long-term care
- Assets being gifted during their lifetime
A life interest trust helps safeguard against these risks.
When does a life interest trust take effect?
A life interest trust only comes into effect after your death and operates in line with the instructions set out in your will.
How can a life interest trust be tailored?
A life interest trust can be carefully drafted to reflect your wishes, including decisions about:
- Who should act as Trustees
- Whether household contents are included
- Whether your partner can move to a different property
- How any surplus funds are dealt with if a property is sold
- When the trust should end, for example if your partner passes away, if they were to remarry or move into residential care
Clear advice at the planning stage is essential to ensure the trust works as intended.
We’re here to help
At Cartridges Law, we have experience advising individuals and families on wills and inheritance planning, including life interest trusts for blended families.
If you are considering a life interest trust, we will:
- Take time to understand your family circumstances
- Explain your options in clear, practical terms
- Help you put a will in place that protects both your loved ones and your assets
Contact Cartridges Law today to arrange an appointment and to plan for the future with confidence.