A life interest trust is one of the most common AND COST EFFECTIVE ways to protect your half of your house.
Why setup a life interest trust?
- Concerns that your spouse could remarry after your death and their new family could inherit your assets.
- This type of trust allows you to provide for your new spouse but ultimately pass your assets to your own children.
- Can stop your half of the property being used to fund medical bills such as private care.
GET STARTED TODAY
Advantages of creating a life interest TRUST
Creating a life interest trust means you control the ultimate destination of your property. The surviving spouse has a home to live in but the first spouse to die can be sure that at least half of the house will ultimately pass to the children, or other beneficiaries. Their half of the property cannot be used to pay care home fees. If the survivor decided to go on a spending spree, or remarried or went into care then only their half of the house could be spent or inherited by another party etc.
This can be a useful way of avoiding all of your assets going in care home fees and addressing the conflicting issues which arise on a second marriage. A new spouse can continue to live in the house, but on the death of the original surviving spouse the half share in the property passes to children or other beneficiaries.