An introduction to Life Interest Trusts

Overview?

A Life Interest Trust is a type of trust that lets you leave your money or property to someone for their lifetime (‘a life interest’) but ultimately to others when that person (the ‘life tenant’) dies.

Typically you might leave a life interest to your partner. They then have the automatic right to the income generated by your assets during their lifetime, but no automatic right to the capital.

If you leave a property or your share of a property in this way, your partner would be entitled to live in the property for life, but your share would then pass to your ultimate beneficiary when he or she dies. This could, for example, be a child from a former marriage.

Life Interest Trusts can provide an elegant solution to other situations, which we explain later on in this article.


Andrea is a Director and Head of Private Client department and specialises in Wills, probate and tax planning.  She also advises on lasting powers of attorney and declarations of trust in relation to property ownership.  Andrea is often asked to advise elderly parents and their children on the issue of trust of the family home and gift of the family home to the children. 

Many clients regard her as the ‘family’s solicitor’ and come back to her whenever they need legal advice. Clients have appointed her to act as their Attorney in the event that they become unable to manage their own affairs and she has acted in this capacity on a number of occasions.

Andrea is a member of Solicitors for the Elderly.

solicitor for the elderly

Andrea qualified as a solicitor in 1985 and has worked as a full time solicitor since then.  She has been with Gray Purdue, now Verisona Law, since 1987, initially acting for clients in matrimonial cases. Since 1999 she has advised on Wills and probate, and related matters.

She was on the Solicitors panel for the Leprosy Mission for a number of years and supports ‘free Wills’ campaigns designed to raise money for charities.    

Past work

  • Acted for a client whose husband died unexpectedly without making his Will and leaving her with a young baby. 
  • Made an application to the Court to amend the rules of intestacy to ensure that the client was able to manage financially without having to tie up funds for her baby daughter until she was older.

Acted for a client whose solicitors at the time had failed to do a deed of variation to reduce the amount of inheritance tax that was payable on his late father’s estate.  Ensuring that the client received compensation for this and was put in the position he would have been had the deed of variation been prepared and signed in the time allowed. 

  • Wills
  • Probate and administration of estates
  • Tax planning as it relates to wills and estates
  • Lasting powers of attorney
  • Registration of enduring powers of attorney
  • Declarations of trust and transfers of equity
  • Initial advice regarding probate and will disputes
  • Living wills/Advance Directives
  • Equity release

“If it had not been for the EPA I would have had real problems even discussing my mother’s affairs with banks, investment companies, government departments and care providers, much less paying her bills from her account.

“Being able to supply copies of the EPA to the various parties meant they would speak to me and act on my instructions. Without it I would have had to pursue a long, complicated and expensive legal process – at a very difficult time personally.

“I would absolutely recommend planning ahead and making an LPA. It could make a huge difference to your loved ones.”

Paul

"We have now received all of the information for the deputyship. We are delighted with the outcome. I would like to take the opportunity to say thank you for your work and support. It was a difficult thing for us due to the circumstances, but you made it easy and that really helped.

Thank you also for the settlement of the account, we are very grateful. I have friends who have Autistic children and adults I will recommend you in the future".

Anonymous

Testimonials

  • “If it had not been for the EPA I would have had real problems even discussing my mother’s affairs with banks, investment companies, government departments and care providers, much less paying her bills from her account.

    Paul

  • "We have now received all of the information for the deputyship. We are delighted with the outcome. I would like to take the opportunity to say thank you for your work and support. It was a difficult thing for us due to the circumstances, but you made it easy and that really helped.

    Anonymous


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