Life Interest Trusts

Interest in Possession trusts or Life Interest Trusts 

When making a Will, it's possible to include a Trust which gives someone a life interest in your property or other assets, without those assets actually leaving your Estate. For example, if you include a Life Interest Trust in your Will and your home is placed into this Trust, then the person with a life interest could continue to live in the property for the rest of their life, but on their death it would then be distributed in line with the terms of your Will.

Why is it useful? 

A married couple may want to have this kind of Trust in 2 common scenarios:

If after the first person dies and the other then goes into care, then the value of their collective Estate could easily be swallowed up in care fees. This kind of Trust protects at least half of the property. 

If after the death of the first, the second person goes on to remarry and fails to make a Will (or makes a Will leaving everything to their new spouse) then the children could end up with very little, or nothing at all.