Life interest trusts – planning for the next generation

With over 633,000 trusts and estates registered on the Trust Registration Service as of August 2023, life interest trusts remain a significant feature of modern estate planning, particularly in the context of remarriages and increasingly complex family structures.

This webinar examines the common legal and practical issues that arise when establishing, drafting and administering life interest trusts, including the powers and responsibilities of trustees.

The webinar will equip practitioners to advise on the advantages and disadvantages of life interest trusts as part of wider succession planning, and to identify and navigate the disputes and challenges that commonly arise once such trusts are in operation.

Topics covered include:

• Will trusts:
  • Contingent interest trusts
  • Discretionary trusts
  • Interest in Possession trusts
• Interest in Possession or Lifetime Interest or Immediate Post Death Interest Trusts: a brief overview
• Practical considerations:
  • Why use an Interest in possession trust?
  • Changing title deeds to the property
  • Trust registration
  • Tax implications
  • Trustees and administration/management
• Common issues and disputes:
  • Identity and role of the trustees
  • Limited funds in the estate/trust
  • Duties and rights of the life tenant
  • Appointment of capital to life tenant
  • Rights of remaindermen
  • Termination of a life interest trust
  • Other potential claims and remedies for life tenant against the estate/trust
• Specific considerations for charities as remaindermen:
  • Monitoring during the occupation/use by life tenant
  • Tax implications
  • Disclaiming an asset