Flexible Life Interest Trust (FLIT)

After your death, the assets covered by the Will trust are managed by the trustees you choose. A life tenant, often a surviving partner, may be entitled to the trust income during their lifetime. Depending on the terms of the Will, they may also have a right to live in a specified property, and trustees may have discretion to use capital for their benefit.

Your Will can set out what happens after the life interest ends. For example, the trust may continue for other named beneficiaries on discretionary terms if your Will provides for this, or assets may pass in another way set out in the Will.

The precise rights, powers and tax treatment depend on the trust terms and your circumstances. We will explain these when helping you decide whether a FLIT is suitable.

A FLIT may help you provide income or a home for your partner while planning for children or other beneficiaries in the future. It can also give trustees flexibility to respond to changing needs, if your Will includes the appropriate powers.

The assets ultimately available to other beneficiaries can change, particularly if trustees use capital as permitted by the trust. No trust guarantees that assets will be protected from care costs or other claims, and tax and administrative costs can apply. We will explain the benefits and limitations for your circumstances.

You choose the trustees and set the trust terms in your Will. Trustees must act in accordance with those terms and their legal duties, and exercise any discretion properly, taking the relevant circumstances into account.

You can also leave a letter of wishes to explain how you would like your trustees to use their powers. It can guide them, but it is not legally binding and cannot replace the terms of the trust. You can usually update it as your family circumstances change.

We can help you consider whom to appoint and how the trust should be structured.