For a simple will, once the executor has distributed the assets (and paid all debts and tax), the process of administering the estate will be complete, and the beneficiaries will have full ownership of the assets left to them. Once a beneficiary dies the asset will be distributed according to their will, if they have one.
For a life interest will, the situation is different. The beneficiary will have use and ownership of the asset for their lifetime. Upon their death, the asset will pass back to the executor, and be distributed to the second beneficiary specified in the original will. This is achieved by the asset being held in trust for the first beneficiary for their lifetime, with the second beneficiary having what is known as an interest in remainder, and then full ownership once the first beneficiary dies.
A life interest will is often used for property, for example to allow a spouse to continue living in their home for their lifetime, but to ultimately leave the house to someone else, however it can be used for other assets, including money, whereby anything remaining at the first beneficiaries death will pass to the second beneficiary.
If you are interested in creating a life interest will, Torch Legal can do this for you, for £300. Contact us today through the live chat or the enquiry form below, or call 0116 456 7897. The process is simple, all done via a video or telephone meeting with a qualified solicitor that you book in advance at a time that suits you.