Can a liferent property be sold?
In Liferent ownership the title deed specifies a “Liferenter” who owns a “liferent”, i.e. a right to use the property during their life. Legally it is possible for the Fiar to sell or transfer the fee of the property to someone else, whilst the Liferenter is alive.
What type of property is a liferent?
A liferent trust (or trust liferent) is a trust which, when settled, confers a use and income benefit, or both, in the trust property upon a beneficiary or beneficiaries. The beneficiary enjoying the use or fruits of the trust property is known as the liferenter.
What is a liferent will?
A Liferent trust is often included within a Will to ensure that a particular asset from a person’s estate passes to someone, but only after another person has died and has had use of that asset during their lifetime.
What is a Liferent interest?
In proper liferents, the liferenter is vested directly with an interest in the land and said interest is registered against the property. In improper liferents, also known as Interest in Possession Trusts, the liferenter enjoys the benefit of property by way of a trust.
How is a Liferent made real?
A liferent is registrable only if: it is a proper, conventional liferent (i.e. created by specific grant or reservation in a conveyance of the subjects, or by specific grant in a standalone deed) resulting in the creation of two distinct real rights, those of the fiar and the liferenter; and.
What is a Liferenter in Scotland?
Liferent, or life-rent, in Scots law is the right to receive for life the benefits of a property or other asset without the right to dispose of the property or the asset. (This is unrelated to Fiars Prices, another term in Scots law.)
Can I trust IIP?
IIP trusts are quite common in wills. Typically, the surviving spouse is given the right to trust income for their lifetime (or the right to occupy the marital home) with the capital passing on death to designated children.
Does a liferent trust last for someones lifetime?
The default position is that the liferent does in fact last for life, although no rent is payable. If a liferent is used it is also wise to specify in the Will/trust who will be responsible for arranging and paying insurance, maintenance and other costs.
What is a liferent in Scotland?
What is an improper liferent?
In proper liferents, the liferenter is vested directly with an interest in the land and said interest is registered against the property. In improper liferents, also known as Interest in Possession Trusts, the liferenter enjoys the benefit of property by way of a trust. Improper liferents are not registrable.
What is a discretionary trust Scotland?
A discretionary trust or discretionary settlement is an arrangement created when an individual—or individuals—(traditionally the truster or trusters in Scots law albeit that the English terminology of ‘settlor(s)’ is becoming more commonly adopted) gifts, or settles, property to trustees, to be held for the benefit of …
Who pays IHT on death of life tenant?
On the Life Tenant’s death, subject to any exemptions or reliefs which then apply, IHT will be payable on the combined value of the trust assets and the Life Tenant’s own estate. The trustees will be responsible for paying the proportion of the IHT payable in relation to the trust assets.
