An increasingly common area of Estate planning is where someone has remarried but has children from a first marriage. A life interest trust in a Will can offer a solution to the issue of protecting the children's inheritance while still providing for the current spouse.
Life interest trusts have a number of applications and we would be happy to discuss these with you and how they may be used in planning your estate.
With a standard Will, if you leave everything to your new partner your assets would become theirs when you die. These assets would in turn form part of their estate and, upon their death, would pass to their own beneficiaries, who may be their own children.
The potential effect is that any children from your first marriage would not benefit under your estate. This risk can be avoided by preparing a Will which includes a life interest trust.
The family home is a good example of where this can be used. You may wish to leave the property to your children eventually, but still enable your current partner to live in the house after you have died.
When their life interest ceases, ownership of the property will pass to your children or other beneficiaries. In this way you can look after the interests of both your partner and your children.
Contact us for more information or to arrange a consultation.