Life Interest Trust

Nurse2047

Hi
I want to find out if it is beneficial to have a Life Interest Will? I have a will already set up. However on reading it is quite complex. My children are still young at school and i am 20 years from retirement. 

getmore4less

An IPDI trust can be very useful way of ring fencing assets while still allowing someone to benefit from them during their lifetime.

A typical case is IPDI for spouse to ring fence for care and issue(children) in case they may change their minds about where they forward assets when they die,  eg remarry and pass to the new spouse. 

Another case I have seen is will life trust for spouse then children then grand children being the eventual beneficiaries. 
Not sure if this still works as it was before transferable and residential NRB

IPDI interact  with nil rate bands especially where the life tenant is not a spouse(civil partner) and no transferable available.

SeniorSam

MFW2026 ..... There are also Wills that create a Trust on first death and gift up to the nil rate band sum in Trust for the children, with the residue(including the 50% share of the home) to the spouse..

However, the wording of the Will importantly gives permission for the Trustees to accept a request from the surviving Spouse to allow that gift to be loaned to them in return for a Promissory Note for that sum to be repaid to the Trustees when they die, from their estate.

In that way the sum gifted to Trust could be loaned to the survivor and the property (that is owned as Tenants in Common) s then in the survivors name only, but with a charge registered on it for the loan.

It would be prudent to have the Will produced through a STEP qualified solicitor.

Keep_pedalling

What is your marital status?

Nurse2047

Thankyou everyone, i am married. 

Keep_pedalling

MFW2026 said:

Thankyou everyone, i am married. 

In which case, it is something it is something you might both want to consider. The primary reason for you to do it is to protect your children's inheritance in case the surviving spouse remarries and then fails to make an new will.

if your other half is the type procrastinate over making a will then I would defiantly do it.