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.
Cohabitation – def. “an arrangement where two people who are not married live together in a romantic relationship and/or sexually intimate relationship on a long term or permanent basis.”
Verisona Law’s Family Law Team offers support and advice on all legal issues related to relationships, children and the wider family.
The process of divorce and separation can be a complex and emotional experience that will see you make unprecedented decisions regarding your finances, children and assets. We can provide you with the help and assistance you need to navigate your way through. This guide will take you through the main factors to consider when going through the difficult process of separation and divorce.