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.
How does a liferent trust work?
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. This may be important to ensure that the terms of the trust are observed.
What is a proper liferent Scotland?
In Scotland the expression ‘liferent’ is used to describe the situation where the income from particular property is to be paid to a person, the liferenter, for a specified period, generally his or her lifetime. At the end of the period the property will generally pass to a person known as the fiar.
How does a liferent work?
A Liferent Trust allows the beneficiary an immediate right to the income generated from the asset held in trust (or the right to enjoy the asset in another way, for example by living in the property) for the present time. The survivor would be the ‘liferenter’ and the children would be the ‘fiars’.
What is a liferent lease agreement?
A liferent can be used where you wish your spouse, for instance, to benefit from the income from your assets or be in a position to use those assets, without them having outright entitlement to/ownership of those assets.
What does liferent mean in a Will?
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.
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.
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.
Does a liferent trust last for someones lifetime?
Liferent Trusts can be set up during a Settlor’s lifetime or included in a Will. When setting up a lifetime Liferent Trust the Settlor usually reserves the right to continue to occupy the house, continuing to pay all bills, repairs and insurance as they would normally.
What does liferent mean in Scotland?
life-rent
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.)
What is a family trust Scotland?
A trust can be set up to benefit members of your family. A trust separates the ownership and management of property from the people who benefit from it. This means that a trustee could manage funds or property on behalf of, for instance, a young family member who would be unable to manage the funds themselves.
What is a liferent and how can I use it?
A liferent can be used where you wish your spouse, for instance, to benefit from the income from your assets or be in a position to use those assets, without them having outright entitlement to/ownership of those assets. Instead, the assets will ultimately pass to others; most commonly, your children.
What is life rent?
life rent. (sometimes hyphenated, always all one word in Scotland) a LIFE INTEREST in property without damaging or depleting it. It is different from an ANNUITY. It maybe a proper life rent, where the property goes directly to the life renter, but almost always in modern times there is the interposition of a trust.
What is a life rent property 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. Where the property is held in fee simple, the owner is termed the fiar. (This is unrelated to Fiars Prices, another term in Scots law.)
What are legal and conventional liferents?
Legal liferents arise by operation of law and come in two types: widow’s terce and widower’s courtesy. These cannot be claimed in respect of any death that occurred after 10 September 1964 and any surviving examples must be extremely rare by now. Conventional liferents arise by voluntary act.