In estate planning, both life interest and right of residence are provisions granted to a beneficiary through a will. While similar, they differ in the rights and responsibilities they provide. At Foye Legal, we help you understand these differences to make informed estate planning decisions. In these important property and estate planning matters, the right lawyer is everything for achieving the best outcome.
A life interest grants the beneficiary, known as the life tenant, broader rights and control over the property during their lifetime, including:
Importantly, the life tenant cannot be forced to vacate or sell the property against their wishes.
A right of residence provides the beneficiary with the right to live in the property but is more restrictive than a life interest. Key features include:
Both options offer flexibility in how property is managed after your passing but can also lead to complexities or legal disputes if not properly structured. For example:
Granting a life interest or right of residence can have significant implications for your estate plan and other beneficiaries. Consulting an experienced estate planning lawyer is crucial to ensure your wishes are clearly documented and legally enforceable.
At Foye Legal, we can help you navigate the complexities of these provisions, ensuring your estate plan aligns with your goals and protects your beneficiaries.
At Foye Legal, we provide expert advice on drafting, updating, and safeguarding your will to ensure it meets all legal requirements and reflects your true intentions. Whether you’re creating a new will, revising an existing one, or dealing with a contested will, our team is here to guide you through every step of the process.
Seeking legal assistance early gives you control over your situation, helping you avoid complications and manage costs effectively. This guide provides practical tips, checklists, and key insights to help you confidently navigate legal processes to secure the best possible outcome.
Your first consultation is vital in safeguarding your interests and laying the foundation for the best possible outcome. At Foye Legal, we value the trust you place in us and are committed to providing clarity, strategy and unwavering support from day one.
A Life Interest grants a beneficiary broader rights to a property for their lifetime, potentially including the right to receive income from it (e.g., rent it out) and more autonomy over the property, although they cannot pass the property on in their will. A Right of Residence is a more limited, personal right to live in a property for a specified period (often their lifetime) but usually without the right to generate income from it or transfer the right.
These arrangements are often used in blended families to provide a surviving spouse or partner with housing security for their life while ensuring the property ultimately passes to the will-maker’s children from a previous relationship. They can also be used to provide accommodation for other loved ones without giving them full ownership.
Key considerations include clearly defining the terms and responsibilities in the will (e.g., who pays for maintenance, rates, insurance), potential Capital Gains Tax (CGT) implications for the estate and the life tenant, and the impact on Centrelink benefits for the beneficiary. It’s crucial to seek expert legal advice to draft these clauses carefully and understand the potential consequences for all parties involved.
Send us your enquiry here or give us a call on 1800 996 994
"*" indicates required fields
3/1 MEMORIAL DRIVE SHELLHARBOUR CITY NSW 2529
LEVEL 3, 63 MARKET STREET WOLLONGONG NSW 2500
contact us to make an appointment
3/1 MEMORIAL DRIVE SHELLHARBOUR CITY NSW 2529
LEVEL 3, 63 MARKET STREET WOLLONGONG NSW 2500
contact us to make an appointment
Keep up to date with the latest insights and news from Foye Legal
