life interest trust


life interest trust
A type of private trust where the life tenant is entitled to receive for life or a fixed period all or a fixed share of the income generated by the trust fund. On his death, the right to trust income will pass to another or the trust may come to an end because the trust capital will be distributed to the capital beneficiaries or remaindermen.
Related links
+ life interest trust
England, Wales
Also known as an interest in possession trust.
A trust that has a beneficiary with a life interest.
Before 22 March 2006, all life interest trusts were treated for inheritance tax (IHT) purposes as though they were owned by the beneficiary with the life interest (called the life tenant). A life interest trust created on or after 22 March 2006 will only be treated in this way if it is one of the following:
In all other cases the life interest will be taxed under the relevant property regime. A life interest is also known as an interest in possession and the principal (income) beneficiary is also known as the beneficiary with the interest in possession.

Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.

Look at other dictionaries:

  • Life interest — A life interest (or life rent in Scotland) is some form of right under a trust which 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… …   Wikipedia

  • Interest in possession trust — An interest in possession trust is a form of legal arrangement which gives a person a present right to the present enjoyment of something [ Viscount Dilhorne in Pearson v IRC [1980] STC 318 at 323] . At least one of the beneficiaries of this type …   Wikipedia

  • Trust law — In common law legal systems, a trust is an arrangement whereby property (including real, tangible and intangible) is managed by one person (or persons, or organizations) for the benefit of another. A trust is created by a settlor, who entrusts… …   Wikipedia

  • LIFE (pro-life organization) — LIFE is a UK based pro life caring and educational charity (Registered National Charity No. 274144), founded in 1970 by Professor Jack Scarisbrick and his wife Nuala in response to the Abortion Act 1967, which introduced legal abortion to… …   Wikipedia

  • Life insurance — The foundation of life insurance is the recognition of the value of a human life and the possibility of indemnification for the loss of that value. F. C. Oviatt, Economic place of insurance and its relation to society[1] Life insurance is a… …   Wikipedia

  • Life estate — A life estate is a concept used in common law and statutory law to designate the ownership of land for the duration of a person s life. In legal terms it is an estate in real property that ends at death. The owner of a life estate is called a… …   Wikipedia

  • Trust metric — In psychology and sociology, a trust metric is a measure of how a member of a group is trusted by the other members. Trust metrics may be abstracted in a manner that can be implemented on computers, making them of interest for the study and… …   Wikipedia

  • Life annuity — The life annuity is a financial contract according to which a seller (issuer) typically a financial institution such as a life insurance company makes a series of payments in the future to the buyer (annuitant) in exchange for the immediate… …   Wikipedia

  • Express trust — Where property is passed to a person but no gift is made, it is held for the owner, this is the Resulting trust; where property should for some reason of public policy or fairness or rule of Equity be held for someone other than the legal owner,… …   Wikipedia

  • United States trust law — Introduction Most law regulating the creation and administration of trusts in the United States is now statutory at the state level. In August 2004, the National Conference of Commissioners on Uniform State Laws created the first attempt to… …   Wikipedia

  • Constructive trust — Wills, trusts and estates …   Wikipedia


Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.