Many life interest trusts are established as testamentary trusts within a Will.

These trusts become active upon the death of the person who made the Will, called the testator.

In these trusts, one or more parties - called the life interest beneficiaries - receives a benefit for the duration of their lifetime or a specified time period.

Following this time, the assets held in trust are distributed to other people or organisations, known as remainder beneficiaries.

There are many types of assets that can be held in trust including:

• investments
• land or property
• cash
• other valuable assets such as paintings, furniture or jewellery.

A life interest benefit allows a person to benefit from an asset for the rest of their life, but without inheriting it.

For example, a trust may allow a beneficiary to live in a property, receive the return on invested funds or receive rental income from a property for the rest of their life. After their death, the trust assets can then pass to another family member, a charity or whoever you have specified in your Will.