Life Interest Trust
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Flexible Life Interest Trust
Flexible Life Interest Trusts (FLITs) are similar to Protective Property Trusts as they are used mainly to protect interests in properties. Oftentimes, Flexible Life Interest Trusts are used when a person making a Will has a property or properties that they rent out to receive an income.
You can pass on the right to receive the income from a rental property to one set of beneficiaries but leave the actual property to a different set of beneficiaries. For example, you could leave the income to a spouse or partner but the actual property to your children.
Benefits of a Flexible Life Interest Trust
It guarantees who benefits from your property if your spouse remarries after you die (marriage would invalidate any existing Wills).
It protects against your spouse or partner making a new will after you die, changing their original wishes.
It can protect the capital value of the property from care home fees if the surviving spouse or partner requires care in the future or enters into financial difficulty.