life interest

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A life interest (or life rent in Scotland) is a form of right, usually under a trust, that lasts only for the lifetime of the person benefiting from that right. A person with a life interest is known as a life tenant.
A life interest ends when the life tenant dies.
An interest in possession trust is the most common example of a life interest trust. In a typical interest in possession trust, the life tenant receives all the income from the trust for the rest of his or her life. On the life tenant's death, the trust comes to an end, and the capital of the trust is paid to another person, known as the remainderman, as specified by the trust document.
One form of life interest is a life estate, an ownership interest in property that lasts for the life of the party to whom it has been granted. Unlike the beneficiary of a trust, the owner of a life estate in property has the right to possession of the property and may use it as any other owner, subject only to a duty to avoid waste of the property value affecting parties with a future interest.

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  1. M

    VIC What is required if a life interest trustee sells the estate after one of the beneficiaries passes away?

    Can a trustee who has a life interest of the Net Income from an estate keep all the finances of sale if a beneficiary passes away before selling? The beneficiary had approved the sale of the estate before passing.
  2. K

    VIC Life interest relinquished

    When my grandfather died in 2006, he left my grandmother a lifetime interest in the family farm, and made his four adult children beneficiaries (remaindermen). Our grandmother now has dementia, and went into a care home four years ago. I have recently discovered the family farm title was...
  3. J

    VIC Life Interest - Transfer Property from Estate to Beneficiaries

    Hi Guys, I am the executor of my late partner's will and I also have a life interest in the property. She left the property to her 3 daughters, to be sold if I leave or die. Currently the property is still under her name. The probate has now been completed and a solicitor has suggested that...
  4. J

    Will and Father's Life Interest in Property

    My dads been left life interest between him and his brother In a property (holiday house) and then the property has been left to me. Is there a way he can leave his life interest to me in his will, otherwise my uncle will have total use of the place til he dies as he is very difficult to get...