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.
What is a proper liferent?
A proper liferent is an encumbrance on property and falls to be noted in the burdens section of a title sheet for a plot of land.
What happens when liferenter dies?
The death of a liferenter will commonly free the whole of the trust property from the liferent. However, it is possible for a proportion of trust property to be made free of the liferent and the remaining proportion to be retained on such trusts.
Can a liferent property be sold?
Legally it is possible for the Fiar to sell or transfer the fee of the property to someone else, whilst the Liferenter is alive.
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.
Is a Liferent a trust?
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.
Who pays IHT on death of life tenant?
The trustees
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.
Who pays IHT when life tenant dies?
In this situation, as the entire free estate passes to charity, the inheritance tax that is triggered by the death of the life tenant must be paid entirely from the trust fund and the trustees, rather than the executors, will be liable to pay that tax (section 200(1)(b), Inheritance Tax Act 1984).
What does life Rent mean 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 is a life tenant entitled to as well as income?
A life tenant is entitled to the income of a fund, but not capital. The entitlement usually continues for life, but can be for a shorter period. For example a widow may have a life interest in her late husband’s estate, until she remarries. On the death of a life tenant, the trust fund may vest in another beneficiary.
Can a life tenant be a beneficiary?
Life Tenant – the beneficiary entitled to receive lifetime benefits from a Trust.
What is a life rent agreement?
What is a Liferent? In Liferent ownership the title deed specifies a “Liferenter” who owns a “liferent”, i.e. a right to use the property during their life. The “Fiar” owns the “fee” of property or, in other words, owns the property but cannot occupy it (unless the liferenter agrees).
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.
What is a liferent trust in Scotland?
Liferent trusts—Scotland Liferent trusts. 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 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 asset. The definition was constructed from the sources.
What is living rent?
A right to use and enjoy a thing during life, the substance of it being preserved. A life-rent cannot, therefore, be constituted upon things which perish in the use; and though it may upon subjects which gradually wear out by time, as household furniture, &c., yet it is generally applied to heritable subjects.