Flexible Life Interest Trust Explained
If you are considering setting up a Flexible Life Interest Trust (FLIT), Rosebery Commercial Finance can guide you through the process and ensure it is structured correctly to protect your estate and your family.
A Flexible Life Interest Trust allows you to leave assets to a chosen beneficiary (known as the Life Tenant or Principal Beneficiary) for their lifetime. The Life Tenant is typically entitled to receive income generated by the trust assets, or to benefit from the use of a property, but they do not own the underlying capital itself.
This structure is commonly used by couples who wish to:
- Ensure a surviving spouse or partner is financially secure
- Protect capital for children or future beneficiaries
- Safeguard assets from potential remarriage risks or external claims
- Maintain greater control over how their estate is ultimately distributed
How a Flexible Life Interest Trust Works
A Flexible Life Interest Trust gives appointed trustees the authority to manage the trust assets responsibly. For example:
- The Life Tenant can live rent‑free in a property owned by the trust
- Trustees can sell the property and purchase an alternative property if circumstances change
- Income from investments within the trust can be paid to the Life Tenant during their lifetime
When the Life Tenant passes away, the capital is distributed to the chosen remainder beneficiaries, such as children or other family members, in accordance with your wishes.
Help & Advice
If you need advice regarding flexible life interest trusts or other types wills and trusts, contact the experts at Rosebery Commercial Finance. Arrange a FREE home visit, video call or phone call consultation. Click HERE to contact us or call: 07950 028245. We look forward to hearing from you.