life interest


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life interest

an interest in property, whether real or personal, conferring the right to the use of that property and the right to take the income or fruits or produce of that property for the period of the beneficiary's life. In English law, life interests, whether in realty or personalty, can exist only behind trusts. In Australia and New Zealand, while it remains technically possible to constitute legal life interests, the practice is for them to be made to take effect under a trust. The holder of a life interest is referred to as a life tenant; if a life tenant assigns his interest to a third party, that third party is said to have an interest pur autre vie.
References in periodicals archive ?
The life interest could be removed if appropriate in the future (after the sale).
If you live in England or Wales and are married or in a civil partnership with children, your partner gets only the first pounds 250,000 of your estate plus a life interest in half the remainder.
The court acknowledged that the kind of split-interest trust that appeared to have been uppermost in the congressional mind was one in which a noncharitable beneficiary held a life interest and the charitable beneficiary a remainder interest.
There are several possibilities to consider: They can sell the home and give charity its portion (the remainder value) and keep the life interest portion; they could accelerate their gift by giving their life interest to the named charity and receive an additional income tax deduction; they could rent the property to a third party; or they could exchange their life interest for a gift annuity income stream.
The IRS has published tables that are used to value the life interest in the property.
This paper explores the relationship between central life interest and job involvement among professionals in two cultures in the developing world, Nigeria and Trinidad.
At the seller's death, the life interest terminated and accordingly, the only thing includable in his estate was the unexpended proceeds from the sale of the remainder interest, and appreciation in the value of the property from the date of the sale.
This means that I inherited outright a significant proportion of my wife's estate and I also have a life interest in a statutory trust valued at approximately PS200,000.
Therefore, it is wise for married couples to make wills leaving everything on flexible life interest trusts for the benefit of their partner.
Gift of remainder interest in real property to charity: The individual has a life interest in the contributed assets; the remainder passes to a charity at death.
Therefore, the life interest did not qualify for the marital deduction.