Life Interest Trusts: An Overview

Estate planning can be complex, but at Peter O’Connor & Son
Solicitors, we have the expertise to help you create a plan that meets
your specific needs and ensures your assets are distributed according to
your wishes. One such tool is the Life Interest Trust. Our aim is to
provide you with a clear understanding of Life Interest Trusts and how
they can be beneficial in specific and appropriate circumstances.

What are Life Interest Trusts?

A Life Interest Trust, often referred to as a life tenancy trust is a specific type of trust wherein a beneficiary, known as the “life tenant”, has the right to benefit from the trust’s assets during their lifetime. This could mean receiving income from investments or having the right to live in a property.
Upon the life tenant’s death, the trust assets then pass to other beneficiaries, often referred to as ‘remaindermen’ or ‘residuary beneficiaries’.

Key Features of Life Interest Trusts

  • Protection of Assets: This type of trust ensures that the principal assets remain intact for the ultimate beneficiaries while providing for a loved one, a.k.a. the life tenant, during their lifetime.
  • Flexibility: The trust can be set up to provide income, a place of residence, or other benefits to the life tenant.
  • Tax Implications: Life Interest Trusts can offer potential tax advantages, especially concerning inheritance tax.

Establishing a Life Interest Trust

Setting up a Life Interest Trust involves:

  • Drafting a trust deed that clearly defines the rights of the life tenant and the eventual beneficiaries.
  • Appointing trustees responsible for overseeing and managing the trust’s assets.
  • Transferring assets into the trust.

Why Consider a Life Interest Trust?

  • Providing for Loved Ones: This trust ensures that a spouse or other loved one is provided for during their lifetime without giving them outright ownership of assets.
  • Estate Planning: It offers a strategic approach to ensure that assets are eventually passed to intended beneficiaries, such as children from a previous marriage.
  • Tax Efficiency: Proper structuring of a Life Interest Trust can result in tax benefits, especially in minimizing inheritance tax.

How Peter O’Connor & Son Solicitors Can Help

Our team of legal experts specializes in the establishment and
management of Life Interest Trusts. We provide:

  • Guidance on drafting a trust deed that aligns with your objectives.
  • Expertise in understanding the tax implications and benefits of such trusts. Ongoing support for trustees in the administration and decision-making processes of the trust.


Life Interest Trusts offer a balanced solution for those seeking to provide for loved ones while ensuring that the principal assets are preserved for future beneficiaries. At Peter O’Connor & Son Solicitors, we are dedicated to guiding our clients through the intricacies of setting up and managing Life Interest Trusts. Whether you’re considering establishing such a trust or need advice on its implications, our team is here to assist.

Note: This content is designed to offer a general overview of Life
Interest Trusts. We encourage you to consult directly with our expert team for specific legal advice tailored to your own personal circumstances.