What is a lifetime interest in a property?
What is a lifetime interest in a property?
Life Interest Trusts are most commonly used to create and protect interests in a property. The husband’s Will would create a Life Interest Trust or Right of Occupation for his wife, so that she can live in the property for as long as she needs. The Will would then provide that the property passes to the children.
Do property protection trusts work?
In law, there is no such thing as a property protection trust. The same structure is used to ‘protect’ property from means tested fees. Your husband or wife never inherits the assets, so they never count as part of his or her estate from which fees can be paid, yet he or she can benefit from them as if they were owned.
What is a lifetime trust will?
What is a lifetime trust? Unlike trusts in wills, which take effect only after your death, a lifetime trust allows you to transfer the ownership of some or all of your assets to a trust while you are still alive. Those assets become the property of a lifetime trust which must be managed and looked after.
What is a proper Liferent?
A deed creating a proper liferent is a registrable deed in terms of section 51(1)(a). A proper liferent is an encumbrance on property and falls to be noted in the burdens section of a title sheet for a plot of land.
What is a Liferent in Scotland?
Liferent, or life-rent, in Scots law is the right to receive for life the benefits of a property or other asset without the right to dispose of the property or the asset.
What is a bereaved minors trust?
A bereaved minor’s trust is a will trust that is created for a child under 18, at least one of whose parents has died. The child needs to become absolutely entitled to the trust property on or before reaching the age of 18. A bereaved minor’s trust benefits from favourable inheritance tax treatment.
What happens when you inherit a trust?
Once the contents of the trust get inherited, they’re just like any other asset. As a result, anything you inherit from the trust won’t be subject to estate or gift taxes. You will, however, have to pay income tax or capital gains tax on your profits from the assets you receive once you get them, though.
