A life interest trust can also be set up in a Will and here could be many reasons for doing so.
In the context of care fees, this can be done to pass a high-value asset to your children whilst still providing for the surviving partner during their lifetime. For jointly held assets, if the surviving partner is made a life tenant of the deceased partner’s share, only the surviving partner’s share of the property would be taken into account for care fees. The ultimate beneficiaries of the life interest trust would be your children, therefore securing their inheritance.
However, to do this for jointly owned property, the property must be held as ‘tenants in common’. If you are unsure how your property is held, or you wish to change to tenants in common, please get in touch and we can help you with this.