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Sarah’s Case: Setting Up a Will Trust

24 Jan 2022

Posted in Case Studies

Tim and Sarah were recently advised by Bharat.  Sarah owned a  residential property.  Sarah had been married before and had two adult children from her first marriage.  Sarah wanted to leave the property to her two children but also  make provision that Tim was provided for in the event she died before Tim.

Bharat suggested that that she set up a will Trust. Under the Will , Tim has a life interest meaning Tim can stay in the property for the rest of his life or if he remarries and upon his death.  The trust comes to an end when Tim either dies or remarries and the property revert’ s to Sarah’s two children.

One of the benefits of a Life Interest Will is that once Sarah dies she knows that Tim is provided for and secondly   her two children cannot be disinherited by Tim.  Sarah is confident if Tim remarries after her death the property won’t go to their new partner or any children/grandchildren of the new marriage.

Under the Will, Sarah’s two children are the two trustees to the trust. Tim can ask the trustees to sell the house and buy a smaller property but will require the permission of the two trustees as they have to sell Sarah’s property and purchase Tim a smaller property

For Sarah the creation of the life interest in her Will means she controls the ultimate fate of her property as it will be passed to her two children albeit only after Tim has died or remarries. At the same time, she know’ s that Tim will have a home to live in and cannot be excluded by her two children.

One of the other major advantages of a life interest trust is that may subject to regulations avoids  property value been taken into account in the event  that Tim has to pay for his  care in the future.  The property is owned by the trust and not Tim as his right  is limited to the right to live in the property for the rest of his life.