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Life Interest Trusts

A Life Interest Trust gives someone an interest in a trust asset for the duration of their life and when that person dies the assets pass on to someone else. The person who has the interest for their lifetime is known as the life tenant. The person who receives the asset after the life tenant dies is known as the remainderman.

For example, a Life Interest Trust gives £20,000 for the lifetime of A, and on A's death to B. This means that whilst ever A is alive he will receive the income which is generated by the £20,000. On A's death, the capital which remains passes to B. B will, therefore, receive £20,000 as there will not have been any growth on the money as A received all interest but the monies have been safeguarded to pass to B. A is not entitled to any of the Capital.

Life Interest Trusts are often incorporated into Wills in order to deal with Asset Protection and to protect your assets when in a second marriage. They can also be used to try and protect assets in case someone goes into a Care Home.

If you have children from a previous relationship it can often be quite difficult to know what the best thing to do is. You wish to provide for your new spouse while at the same time ensuring that your children get what was yours. If your new spouse was to remarry or has children of their own you would probably want to make sure that your assets pass back to your children. A Life Interest Trust can help this happen.

Life Interest Trusts are a fantastic way of safeguarding your assets and passing on any inheritance. However, because of the complexities involved it is essential that they are written by a professional as any errors can cause the whole trust to fail.

Trusts can be very complex documents but can also be essential in order to ensure that the best possible solution is offered to all your concerns.

It is essential to take professional advice before entering into a trust as there can be tax implications of placing assets within trusts.

For more information, why not click the links below or download one of our helpful guides

Alternatively, give us a call on 01302 341414 (Doncaster) and 0114 272 1884 (Sheffield) and our friendly team will be happy to have a chat with you.

What other types of trust are available?

There are numerous types of trust available, the most common types are:

Life Interest Trusts

Call our friendly team for advice regarding Trusts

01302 341 414 0114 272 1884
Wills, Probate and Trust Team Lead by Partners, Stephen Coates and Lauren Smith our Wills, Probate and Trusts team will help you plan for the future and protect your assets Meet the team

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Wills, Probate and Trusts Team 

If you are looking for legal experts to help you with your Wills, Probate or Trusts needs, our team will give you a call back at the earliest opportunity. Alternatively, you can call our Doncaster office on 01302 341414 or our Sheffield office on 0114 272 1884
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