The terms “Right to Occupy Trust” and “Lifetime Interest in Property Trust” refer to specific legal arrangements often used in estate planning, particularly regarding the use of property. While they may seem similar, they have distinct features and implications:
Right to Occupy Trust
Lifetime Interest in Property Trust
Key Differences:
Duration and Flexibility:
Right to Occupy Trust: The right to occupy may end before the life tenant’s death, depending on the terms of the trust.Lifetime Interest in Property Trust: The life tenant’s interest typically lasts for their lifetime and only ends upon their death.
Scope of Rights:
Right to Occupy Trust: The right is usually limited to occupying the property, without entitlement to income from it.Lifetime Interest in Property Trust: The life tenant may also be entitled to income generated by the property.
End of Rights:
Right to Occupy Trust: The right to occupy may cease upon certain conditions like remarriage.Lifetime Interest in Property Trust: The life interest typically ends only upon the death of the life tenant.
Use of Property:
Right to Occupy Trust: The trustees may be required to provide alternative accommodation if the original property is sold.Lifetime Interest in Property Trust: The life tenant has a broader right to benefit from the property, including potential rental income.