Many feel pressure to provide for their spouse and still take care of their children. You can do both with a Flexible Life Interest Trust from Wills 4 Less not only provide your loved ones with freedom from worry and uncertainty, but give yourself that genuine peace of mind.
The Flexible Life Interest Trust Explained
A Flexible Life Interest Trust is a very useful estate planning device which can provide security and some flexibility for your chosen beneficiaries, following your death. But what does this actually look like?
So, in plain English, a Flexible Life Interest Trust enables you to leave your wealth (for example, the family home or investments) to a specific person (this is usually your spouse or partner), for their lifetime, and when they die, this wealth passes to your children (this can be any other specific individuals).
For instance: If you bequeath your house in a Flexible Life Interest Trust for your wife, she can live there for her lifetime. When she dies, then the house, rather than going elsewhere, will go to your children. This guards your children’s inheritance and provides security for your partner.
If you put a Flexible Life Interest Trust in your will you:
Your spouse or your partner can keep living in the house, or they can (if you had some investments that you derived income from during your lifetime) keep getting an income from those investments, but they can’t cash out or treat as their own any of the capital. At their death, any remaining assets will go to your named beneficiaries.
It’s an organized yet light touch that delivers security and simplicity.
You might consider establish a Flexible Life Interest Trust if you want to ensure that your family are provided for in a manner that reflects your own wishes – both during the lifetime of your partner, and after they have died.
For instance, let’s say you’re married or in a long-term relationship; this type of trust can help ensure that your partner can access your estate during his or her lifetime. They would be able to stay in your home, or take income from your assets. But, crucially, you also get to choose who inherits these assets once your partner is no longer there – traditionally your children or grandchildren.
The following are examples of some of the most common scenarios when a Flexible Life Interest Trust may be suitable:
You want to preserve the inheritance that you leave the children.
If you’re concerned about your children missing out – particularly if your spouse remarries – this trust means your share of the estate will eventually pass to them.
You need to create safety for your partner.
It provides peace of mind for your spouse, who can continue living comfortably for the rest of your life without worrying about losing your home or income.
You never know, if things change, you want flexibility.
Unlike a fixed trust, with this option, your chosen trustees could alter the way that income or assets are used, to reflect the changing needs of your family.
You are concerned about care and remarriage risks.
And this trust structure may help place a firewall around your share of assets so that if or when your partner is in need of long-term care or remarries, your children’s inheritance is kept safe.
Here at Will 4 Less you'll find we don't do estate planning for the money, we do estate planning for peace of mind. If you’re not sure that a Flexible Life Interest Trust is the right option for you, our caring Advisors can use their experience to steer you in the right direction; advising the special features that are just right for your family circumstances.
When you’re planning for the future, creating a Flexible Life Interest Trust is a significant commitment – and it’s to be expected that you might question whether it is possible to change your mind further down the line.
Here’s the honest truth:
Once you establish that sort of trust, it’s not generally something you can just change your mind on or cut off. It turns into a legally binding contract that can guarantee that whatever you expressed in your last will and testament, when it’s written, that’s exactly what will happen.
But don’t let that worry you. The “flexible” part doesn’t mean that you can cancel it, but that it’s flexible only in the sense that the trustees can adjust how the assets are managed as needed, so those assets fit your loved ones’ needs as closely as possible. Let’s say, for instance, that your spouse will need extra care in her later years, the trustees can make decisions in their best interests within the four corners of the trust.
If you think you may someday want to completely revoke or rewrite the trust, you can do so only in rare circumstances (such as if you included certain powers to do so from the outset or if it’s permitted by law and all the beneficiaries agree to it).
That’s why receiving explicit guidance before establishing any trust is so crucial. It guarantees that you’re comfortable that it represents your actual desires – now and the future you hope your family will have.
In absence of a Flexible Life Interest Trust, your spouse could inherit all your assets outright, i.e. :
Your children’s legacy may be jeopardized if your spouse remarries.
Care fees might eat into more of the estate.
You also lose control over the fate of your assets after your spouse passes.
If you’re thinking a Flexible Life Interest Trust is the right option for you then here at Will 4 Less we’ll listen and support you, every step of the way. We believe everyone deserves to have a peace of mind in knowing their family is safe.
We’re ready to help you protect your family’s future! Call Will 4 Less now and chat to us about putting a Flexible Life Interest Trust in place as part of your will today.
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