A Flexible Life Interest Trust (FLIT) is a sophisticated form of Will Trust that combines two separate Life Interest Trusts into one comprehensive arrangement. It is designed to provide security and lifetime benefits to a chosen individual, while ensuring that your assets ultimately pass to your intended beneficiaries.
The first trust usually relates to the main residence, similar to a Property Protection Trust, while the second captures the remainder of the estate (excluding personal possessions). This structure offers flexibility, control, and long-term protection for both current and future beneficiaries.
A Flexible Life Interest Trust allows you to:
Grant a lifetime interest in your property and estate residue to a chosen beneficiary (known as the Life Tenant)
Ensure the Life Tenant can live in the property or benefit from trust assets for their lifetime
Allow the Life Tenant to receive any income generated by trust assets, such as rental income or investment returns
Retain control over who ultimately inherits the assets after the Life Tenantβs interest ends
Protect assets from risks such as remarriage, creditor claims, or sideways disinheritance
The Life Tenant benefits from the assets but never owns them outright, ensuring your long-term wishes are respected.
This type of trust is particularly suitable if you want to balance care for a loved one with certainty for future generations. It is commonly used in blended families, second marriages, or where asset protection and control are key priorities.
By separating lifetime benefit from ultimate ownership, a Flexible Life Interest Trust provides reassurance to all parties involved.
The Life Tenant is the person who is entitled to benefit from the trust assets during their lifetime. They may live in the property and receive any income generated by the trust but do not own the assets outright.
Remainderman beneficiaries are those who will inherit the trust assets once the Life Tenantβs interest ends, usually on their death or if the trust is otherwise terminated.
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No. If the trust includes a property, the Life Tenant is typically entitled to live there rent-free, although they may be responsible for ongoing costs such as utilities, maintenance, or insurance.
Yes. If the trust includes rental properties or income-producing investments, the Life Tenant is entitled to receive that income for the duration of their lifetime interest.
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