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What is a Life Interest Trust and Why Should you Offer it to Employees?

Offering a range of benefits to your employees, in a time when there is a wealth of choice at our fingertips, is a great way for you to get ahead of your competitors whilst retaining your key talent. Wills and Trusts are an excellent way of providing an extended benefit offering to your employees.

 

What is a Life Interest Trust?

Life Interest Trust Explanation for Employees:

A Life Interest Trust allows you to ensure your intended beneficiaries receive your property or assets, whilst allowing someone else to benefit from them during their lifetime.

For example, you can protect your children's inheritance from a previous relationship, whilst looking after your current partner or spouse. Your current partner can live in your house, for a predetermined time scale or until they no longer live in the house, at which point your children inherit the property. This trust is also popular to protect inheritance for children if your spouse remarries, should the unforeseen occur.

 

Why is a Life Interest Trust an Essential Employee Benefit?

Employees need to feel valued at work, and showing that you care for your employees wellbeing and their families is key to employee engagement.

The growth of Cohabiting Families: Office National Statistics:

Family structures have changed in recent years, and it is important for your company to consider this when providing employee benefit services. Having Will Writing and Trust services is likely to demonstrate that your company is moving with the times and is understanding of your employees needs.

The Office for National Statistics 2017 statistical bulletin for Families and Households highlighted that the largest growth in family type was of the cohabiting family. This family structure has more than doubled from 1.5 million to 3.3 million, since the statistics first begun being collected in 1996, along with 2.8 million lone-parent families.

Society is changing and as an employer you need to protect your employees and their loved ones. As we move away from the traditional nuclear family, employees need the reassurance of a Will or Trust to protect their assets and ensure their loved ones are well looked after. Read our Case Studies for further information on how important the correct Trust and Will are in preventing financial stress on your employees loved ones.

 

How To Offer a Life Interest Trust:

You can offer Will Trusts, such as a Life Interest Trust, to protect your employees through either a Flexible Benefit Package or a Voluntary Benefit Package. To find out more read about our Employee Benefit Packages, or call us on 0808 2811545 and discover the best solution for your employees and their loved ones.

 

Referenced in this post:

The Balanced Careers
Family Benefits
Modern Living
Office For National Statistics