A lot of people are concerned on how to support their spouse while also ensuring the future well-being of any children. With a Flexible Life Interest Trust from Wills 4 Less, you can have the best of both worlds – long-term security for your loved ones and peace of mind for yourself.
Explaining the Flexible Life Interest Trust
The Flexible Life Interest Trust is an effective estate planning solution to provide security and versatility for your loved ones after you pass away. But in practical terms, what does that actually mean?
In essence, a Flexible Life Interest Trust lets you leave your assets (e.g. your house or investments) to someone (usually your spouse or partner), so that they can benefit from them during their lifetime and then passes those same assets to the people you want after they die - often your children or other named beneficiaries.
For instance, if you leave your home in a Flexible Life Interest Trust for your wife, she can remain living there all her life. When she dies, the house will pass to your children as well and not be given away. It protects your children’s inheritance and provides security for your partner. To learn more, visit https://amersham.wills4less.co.uk/flexible-life-interest-trust/
People often inquire – why not just leave my whole estate to my spouse outright? The following are typical concerns that a Flexible Life Interest Trust Amersham may solve:
A FLEXIBLE LIFE INTEREST TRUST WRITTEN IN TO YOUR WILL As the person making the will, when you set up a Flexible Life Interest Trust in your will ("FLIT") you:
For instance, your spouse or partner can live in the house or draw income from investments, but they cannot sell or spend the principal as if it were theirs. At their death, whatever assets are left go to your designated beneficiaries.
Such a structured yet comfortable framework allows for both security and clarity.
If you want to ensure that your beneficiaries are cared for according to yours and not your partner’s wishes – both in lifetime and death – then give consideration to putting in place a Flexible Life Interest Trust.
For instance, if you’re married or in a long-term relationship, this kind of trust can mean that your partner can benefit from your estate while they are still alive. They might be able to remain in your house or benefit from the income that your assets produce. But crucially, you also get to determine who inherits all of this stuff after your partner dies — generally, children or grandchildren.
Here are the two main scenarios when a Flexible Life Interest Trust may be the right fit for you:
If you’re concerned your children could lose out – particularly if your partner goes on to remarry – this trust ring-fences your share of the estate so it eventually passes to them.
It provides your partner peace of mind and confidence they can live in good comfort for the rest of their life without losing a home/assets.
Unlike inflexible trusts, this feature permits your trustees to decelerate the use of or redirect income or assets, as family needs change.
This trust arrangement can be used to protect your share of assets though, should your partner need long-term care or remarry, your children’s inheritance is protected.
Our philosophy of estate planning is that it’s not just about money-It’s about peace of mind. If you’re not sure what a Flexible Life Interest Trust means for you then we can help – our approachable advice is always in clear terms that really make sense for your own family.
It’s a big step to put in place – so you may well be asking “can I change a Flexible Life Interest Trust later?”
Here’s the honest truth:
Once over the ledger hump, this is not typically something you can readily change or rescind. It’s a legally binding agreement that protects your wishes exactly how you want them protected.
But don’t let that worry you. (The “flexible” part doesn’t mean you can cancel it; rather, your trustees have latitude to change how the assets are managed to best align with what your loved ones need over time.) For instance, if your spouse needs extra support in later years, the trustees can act for their benefit within the terms of the trust.
If you anticipate that you may wish to make a total revocation or rewrite the trust in the future, you can only do so under very specific circumstances — like if you included that power from the beginning or if certain legal conditions are met by all beneficiaries.
That is why clarification in advance of establishing any trust is crucial. It means that you feel confident it truly conveys your precise wishes – both today and for the future you desire for your family.
In the absence of a Flexible Life Interest Trust: your spouse has an immediate 100% entitlement to inherit everything, i.e.:
Should you be considering a Flexible Life Interest Trust, simply contact our team of experienced legal professionals at Will 4 Less and we’ll answer any question you may have. We feel like everyone should have the peace of mind their family is covered.
Are you ready to protect the future of your loved ones? Why not call Will 4 Less today to discuss a Flexbile Life Interest Trust in your will?
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