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A life interest trust is a type of trust that gives a beneficiary the right to receive income or benefit from a property or asset during their lifetime, while preserving the capital for another beneficiary after their death. This structure is often used to protect property for children from a previous relationship while allowing a surviving spouse to continue living in the home.
Legal Reference:
- Life interest trusts are commonly included in wills and governed by general trust law principles. The beneficiary with lifetime rights is called the “life tenant,” and the person entitled to the remainder is the “reversionary beneficiary.” Trustees must act in accordance with the terms of the will and the Trustee Act 2000.
Sources:
- Wikipedia – https://en.wikipedia.org/wiki/Life_interest
- Wikidata – https://www.wikidata.org/wiki/Q6545201
- Knowledge Graph – https://www.google.com/search?kgmid=/m/02pst2g
- DBpedia – http://dbpedia.org/resource/Life_interest
- Product Ontology – http://www.productontology.org/id/Life_interest
