Interest in Possession Trust

Interest in possession trust is a common form of trust. It gives the beneficiary an immediate right to income from the trust. A beneficiary is said to have an interest in possession when he has the right to enjoy the trust property. Interest in possession trusts are often created as part of a will. A surviving spouse will be granted a right to the income from the trust by the settlor. Upon the death of the surviving spouse, the rest of the fund may pass to the couple’s children or other named persons. Interest in possession trusts are usually used in order to protect capital. Interest in possession can be for a fixed period, indefinite period or for the rest of the beneficiary’s life.

Category: Trusts