Life Interest Trust Will Solicitors
In Bognor Regis, West Sussex

Life Interest Trust wills have a number of advantages. By putting one in place, you can specify who assumes responsibility of your estate so your home and property is in safe hands and taken care of as you intended, after your death.

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Life Interest Trust Will Solicitors
In Bognor Regis, West Sussex

Protecting the inheritance interests of your family and loved ones is vital, so the people you name in your will, your beneficiaries, can inherit your estate after you die. But there may be circumstances where you’d prefer your estate didn’t go directly to the beneficiaries, instead deciding that it be held on their behalf in a certain way, making them Trustees.

Life Interest Trust wills have a number of advantages. By putting one in place, you can specify who assumes responsibility of your estate so your home and property is in safe hands and taken care of as you intended, after your death.

At MJR Solicitors, our will specialists can advise you and help you consider all the options for this type of will, as well as including a Life Interest Trust into either a new or existing will.

For more information on our will service or to arrange an appointment, contact us online or by phone today for a initial consultation:

mark@mjrsolicitors.co.uk
info@mjrsolicitors.co.uk
01243 945054

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How does a Life Interest Trust work?

It’s worth considering whether a Life Interest Trust can offer what you need in order to control what happens to your property after your death. While it can provide a way to ensure your beneficiaries or surviving spouse are adequately provided for, and that their inheritance is safe, it also enables provisions for a ‘life tenant’ of your own choosing.

Unless you’ve specified a definite length of time for the Trust to remain in place, the life tenant can then live in your property until they either die, remarry, or choose to cohabit. In any of these events, the Life Interest Trust will end and the ownership of the property transfers to your estate to be dealt with as expressed in your will.

When arranging a Life Interest Trust, firstly you should choose an individual to become the life tenant who will have the right to occupy your property, or to receive income from it such as by renting it out. However, they’ll have no automatic right to any capital invested in the property.

The difference between joint ownership and tenants in common

In the situation where your property is jointly owned with another person, i.e. if you are a married couple, then when you die your share in that property will pass automatically to the co-owner, regardless of whether or not this is stipulated in your will.

Therefore, before you set up a Life Interest Trust, you’ll need to end the joint ownership so that you can choose which individual to gift your share of the property to, rather than it defaulting to the co-owner.

In order to ensure your share of the property goes to the individual you choose and the conditions of their tenancy, you need to make sure the property is owned as tenants in common. You can then use a Life Interest Trust to specify both the beneficiary of your share and the terms of the Trust.

Substitute Properties

Naturally, if the Life Interest Trust is to stay in place until the death of the life tenant, it is possible that the property becomes unsuitable for that person over an extended period of time. They may, for example, wish to downsize or change location. In this instance, the Trust fund will allow the life tenant to sell the property and purchase a substitute property from the funds raised.

However, any surplus funds for the sale of the original property will be held in trust by your appointed trustees for subsequent distribution to your beneficiaries.

In the case where the Life Interest Trust stipulates that the life tenant has the right to any income generated by the property, as well as the right to occupy it, then they’ll be entitled to any income generated by the sale of the property.

Trustees

When setting up a Life Interest Trust, it’s important that you appoint between two and four Trustees to manage it on your behalf, although if a professional Trustee is appointed such as a solicitor, then they can act alone.

Whoever you appoint, you should remember that they’ll have total control over your property until it passes to your beneficiaries at the end of the life of the Trust. They’ll be required to act in the best interests of the life tenant, and will be unable to sell the property without the life tenant’s consent.

Why a Life Interest Trust is important for your family

A Life Interest Trust can help you to protect your share of a property such as a family home, in the case of a number of eventualities. For instance, your children’s inheritance can be protected if your spouse remarries following your death, or if there are children involved from an earlier relationship.

In these cases, the Trust enables your spouse or partner to continue living in the property until their own death. During that time, although they’ll be responsible for the upkeep and insurance of the property, on their death, or at the end of the Trust period, the capital raised by the property will be distributed amongst the beneficiaries named in your will.

Assuming the life tenant is your spouse, there’ll be no inheritance tax due on the initial gift since spousal exemption will apply. On their death, the transferable nil rate band allowance can be offset against the inheritance tax allowance already in place at that particular time, which may mean, depending on the value of the estate, that no further inheritance tax is payable.

If the life tenant is your unmarried or civil partner rather than your spouse, there may be additional tax implications. Since spousal exemption will not be available, the value of the property will form part of their estate for the calculation of inheritance tax, even though they’re not the actual property owner.

Our happy clients are our results

"10/10 for everything. We were making simple wills and Mark was courteous, professional and gave us confidence in all he did. It was all straightforward."

Mr & Mrs Steele

Bracklesham

"Having never used a Solicitor before we found the whole experience easy, relaxed and, although a legal matter, it was informal feel whilst being professional. Mark was friendly and welcoming and on a level with us, coming across as a nice person you can relate to. He is very knowledgeable and offers excellent advice and information, answering all our queries."

Mr & Mrs Sharp

Hayling Island

"A massive thank you to Mark Riley and Beverley Rayner for allowing me to accompany them on a few occasions whilst they advised clients (in their capacity as duty solicitor) at the police station.

I’m currently working towards becoming an accredited Police Station Legal Representative, and so being able to observe Beverley and Mark in this role proved to be invaluable experience and an important addition to the personal study section of my portfolio. Thanks to their thorough, professional and sensitive approach with their clients, I have learned a huge amount. It has given me the grounding I need to continue towards my goal."

Mrs C

Rustington

"10/10 to all questions"

Mr L

Aldwick, Bognor Regis

"Thank you for your good work"

Mrs D

Pagham, Bognor Regis

"10/10 to all questions"

Mr B

Pagham, Bognor Regis

"Quality service quick and easy advice. Fees are great and no messing around. MJR cut staright to the point Got a motoring offence ?! Easily sorted from overseas. Definitely would recommend"

Mr P

New Zealand

"Thanks for sorting out my will also power of attorneys. Not a pleasant subject having to think about when I die, but it was done in terms I understood and quickly now it's something I don't have to think about. Thank you again."

Mrs H

Felpham, Bognor Regis

"10/10 for everything. Mark was very friendly and knowledgeable and explained everything simply in order for us to understand. Very efficient and helpful."

Mr & Mrs S

Bognor Regis

"Wouldn't use anyone else. Great help, advice and a superb professional service."

Mr R

Aldwick, Bognor Regis

"You have been very flexible regarding meetings.... and you have made a difficult time far less stressful. Very reassuring. Very straightforward and understandable."

Mr A

Oxfordshire

"Patient and Helpful" 10 out of 10 for all questions."

Mr S

Flansham

"10 out of 10 to all questions."

Mrs E A Walters

Emsworth

"Definite 10 out of 10 to all questions, I think your service was excellent and I cannot think of how to improve it. Everything was dealt with most efficiently and my sister and I were very pleased."

Mrs E R Hector

Bognor Regis

"10/10 for everything. Mark was reassuring and efficient."

Mr B

West Sussex

"10/10 to all questions, thank you very much for your excellent service I will recommend you to all my friends."

Mr L

Chichester

"We are so grateful to Mark for all his help and considerable patience regarding the recent preparation of our wills and for the invaluable advice concerning a Trust for our grandson. He took all the time that was needed to ensure that we understood the relevant aspects of this complex subject. He explained the legal ramifications in terms that a layman could understand and he made sure the resulting arrangement was fully in line with our intentions. It has set our minds at rest to know that this important matter has been so efficiently dealt with and thus we no longer need to feel concern over it. Full marks in all departments to MJR Solicitors; it is hard to see how such a friendly and professional service could be improved."

Mr & Mrs G

Felpham

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MJR Solicitors Ltd, Bankside,
Middleton Road, Middleton-on-Sea, PO22 6DB

Call us on:  01243 945054
Mon to Fri 9am to 6pm

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