A Flexible Life Interest Trust (FLIT) is often described as the ideal modern Will Trust as it allows for adequate provision for a surviving spouse/partner whilst incorporating flexibility into the will whereby other family members/beneficiaries may benefit should the spouse not require the provision after the first death.
- Guarantees who will benefit from cash assets and investments as well as property if the surviving spouse/partner either remarries, enters into a new relationship or writes a new will after first death
- Allows a nominated person to benefit from the income generated from investments whilst protecting the capital value for future generations
- Reduce the potential impact of residential care home fees on your estate should your surviving partner go into care
This trust is created on the death of the first spouse/partner and the capital assets of the deceased are held in a trust which pays any income generated to the survivor for their lifetime. This is treated for inheritance tax purposes as an outright gift to the survivor so for married couples or those in a civil partnership, it does not create a tax charge and does no use any of the inheritance tax allowance of the deceased spouse, preserving it for later use upon the death of the surviving spouse.
Would you like to know more about Flexible Life Interest Trusts? No problem, get in touch and we can guide you through the circumstances in which this may be an appropriate solution for you or your client.