Could you benefit from having a life interest trust in your will?
There are a range of situations in which life interest trust wills can be beneficial and have a better outcome than a straight-forward will.
Life interest trust wills can be beneficial for people who want to ensure that their children get their share of the family home. If, for example, you leave everything to your spouse/partner under a straight-forward will and that person happens to re-marry or co-habit with another person following your death, your share of the property could pass to their new spouse/partner under a new Will, the intestacy provisions or by a lifetime gift rather than to your children. If, however, a life interest trust was included in your will giving your spouse/partner the right to live in the family home for the rest of their life, then your spouse/partner would not be able to give your share away to another person during their lifetime or on their death.
Life interest trust wills can also be beneficial when considering potential future care home fees. If you have a straight-forward will leaving everything to a spouse/partner with whom you own a property and following your death your spouse/partner goes into a care home, then the entire value of the property could be used up in care home fees, leaving nothing to pass to children, or your chosen beneficiaries. Whereas, if you have a life interest trust in your will and your spouse/partner subsequently goes into care, then only the value of their share of the property can be taken in to account when assessing their contribution towards care home fees and your share will be ring-fenced in the trust and can ultimately pass to your chosen beneficiaries.
There are other situations in which life interest trust wills are beneficial and if you feel you could benefit, you should seek legal advice to discuss your personal circumstances and what tax implications may be involved.
Please contact a member of the Private Client Team at Rowberry Morris who will be happy to assist you in preparing your Will.