What is a flexible Life Interest Trust?

Put simply, this is a way of protecting your assets after you have died.

We all work hard. We all want to ensure that the money we have earned, the property we own, the possessions we’ve accumulated, are passed on to those we care about. A Will is the standard conduit for this; it sets out assets and the intended beneficiaries. But a flexible life interest trust could give some additional comfort.

Under this type of arrangement, ownership of your assets will transfer to the trust, rather than go directly to your spouse (for example). A trustee will manage the assets so that your spouse is taken care of, financially. But, crucially, your spouse won’t own your entire estate outright. That means that a significant level of control over the assets is retained, so the bulk is protected – including from any new partner that your spouse might go on to meet. And when they die, the remaining assets will usually be passed on to the next line of beneficiaries.

There are other benefits to this type of arrangement, too. One is in inheritance tax savings. Another – and it’s one that has received its fair share of column inches in recent weeks - is in residential care costs; when the surviving partner’s ability to pay is assessed, assets held in a trust won’t count. So if after you have died, your spouse needs to go into a care home then the trust will preserve your estate for your children. It means that the family home, owned by the trust, may not need to be sold to pay for this care.

This all comes back to one thing: proper planning. For most people, it’s a case of finding out about the options – how to best protect that pot of money; how to make sure that family members will be provided for. We deal with these questions day in, day out. And we put in place the arrangements that give clients peace of mind now, for the years ahead.

Contact our Private Client team today who will be happy to discuss your specific circumstances, tel: 01264 353411, email: probate@bsandi.co.uk or fill in our  no obligation, online enquiry form and a member of our team will be in touch shortly.