Flexible Life Interest Trust
If you are considering writing a will, but don’t know what type of will is best suited to your personal circumstances, then we can help. Our professional and friendly team of will writers will work together with you in the comfort of your own home to create the will that reflects your personal wishes once you die.
Below we explain what a Flexible Life Interest Trust is, and why you may decide to incorporate one into your will.
Basically a Flexible Life Interest Trust or (FLIT) is incorporated into your Will to offer you peace of mind, especially if you have large investments or assets, that also includes property. What the FLTI does is protect the value of these assets for those that you wish to benefit from them once you die. Most often this will be the remaining spouse/partner or children.
Why is it flexible?
The flexible part comes from the fact that all trustees who are named in the will can advance any capital or income to the named survivor, when and if needed. The main aim of the trust though is to financially protect the spouse or partner who is left behind. for the rest of their life via regular payments that are not impeded by any changes to their tax status. This is because the money revived is done so as a gift.
If the surviving partner or spouse should die, then any capital is then automatically passed down to any children or other named beneficiaries.
How the Flexible Life Interest Trust works
- Names trustees can 'lend' capital
- If capital is needed, trustees can lend this capital to the survivor of the will. None of this will need to be repaid if the survivor needs to go into a care home.
- Names trustees can 'give' capital
- Names trustees can give any capital to the survivor when needed.
- Capital can be given to names beneficiaries
Any capital can also be given outright to any children or other named beneficiaries in the will. This can even be done if the named partner or spouse is alive but is resident for example in a care home. Converting some/all of the trust into another trust
This can be done for any other type of trust fund if needed, and if it would benefit the survivor or beneficiaries financially.
So what are main benefits of the trust ?
The major benefit is that you have control and final say in who gets what financially after you die. This can be in the form of money or property. You can also nominate a person in your will who can benefit from any investments that occur once you die.
By having a will you are ultimately protecting your assets and assuring that your loved ones are well looked after financially once you die. Without a will, it is the government who will decide what happens to any assets that you have.
To learn more about our range of will writing services and in particular about how you can write your own Flexible Life Interest Trust, please do give us a call today.