Life Time Interest Trust 

Lifetime Interest Trusts allow a particular beneficiary the right to receive income from, or use the specified property stated within the Trust for the rest of their lifetime. The principal beneficiary often referred to as the 'life tenant', is however not entitled to receive Capital. After the life tenant’s death the assets in the Trust will pass to other beneficiaries identified in the trust deed. 
For example, this Trust could be used if you wanted to make sure your children from your first marriage receive your assets, but without depriving your new spouse of the use or income from them. 
How It Works: 
A Flexible Lifetime Interest Trust provides the 'trustees' with the authority to pay trust income and normally trust capital to the life tenant. Meaning the Trust may provide for the life tenant so that they can live in the property rent free (the property being owned by the Trust), whilst giving powers to the trustees to sell the property and buy an alternative property for the life tenant to live in. 
* This type of Trust can provide legal protection for the life tenant against any other beneficiaries of the Trust and vice versa. 
Any investments owned by the trustees should be carefully managed in order to reduce the tax burden for Capital Tax Gains, whilst making use of the annual exemptions for Inheritance Tax purposes (such as RNRB and NRB), as part of estate tax planning. 
If you have considered who obtains and protects your family home and property when you are gone, a Flexible Lifetime Interest Trust is an excellent way to ensure that your property is left in the right hands. Using this type of Trust allows you to specify who owns the rights to your property in order to protect your family home and property. 
Mr and Mrs Cooper decided to have wills including a Life Interest Trust for the benefit of each other during the reminder of their lifetime. Their wills could leave their half share of the house to a trust, and, if they want, any savings and investments they own at their death. 
Under the terms of the trust, the survivor could remain living in the house rent free. They would also be free to move to a new house if they wished and the trust's share of the proceeds of the sale of the house could be invested in the new house. 
If the trust held any money or investments then the survivor would be entitled to the income from those investments but would not be able to spend the capital. Upon the death of the surviving spouse, the trust would come to an end and the residue of monies/assets would be divided in accordance with the couple's wishes.  
So, Mr Cooper could leave his 'share' of the estate ultimately to pass equally between his two daughters and Mrs Cooper could leave her 'share' of the estate ultimately to her son. 
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