A big worry for a lot of people is that their share of the family home may not end up with their children if their partner had another relationship, or had to go into care.
Using a trust in your Will can help with this problem and offers a popular way of protecting the family home.
The most common trust used is a ‘Life Interest’. This provides a legal framework for your partner to live in the property, subject to basic conditions like paying the bills and maintaining it. When they pass away it automatically passes to your children or chosen beneficiaries. Some people might choose to remove the right for the surviving spouse/partner to remain living in the house if they were to cohabit or marry someone else.
A Life Interest trust can also provide you with peace of mind that you are providing for your spouse or partner for their lifetime, but that your children will eventually benefit in the future. Some prefer this arrangement rather than gifting away their property in their lifetime and losing control.There is also flexibility within the trust to downsize to another property.
It is important to choose the right trustees to manage the trust and that is something we can advise on and can also act as professional trustees, if required.
When advising on Life Interest trusts we review your circumstances, your options and any tax liability that may be associated. Essentially, Life Interest trusts can be an effective estate planning tool, but care needs to be taken to ensure they are right for you. If you would like our specialist advice, then please do get in touch.
Contact our Solicitor Imogen Powell, who can meet you for a FREE no-obligation home appointment in Taunton and the North Petherton areas.
We look forward to meeting with you!