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A life interest trust (specifically an Immediate Post-Death Interest, or IPDI) is created by a will to provide the surviving spouse with income or use of assets during their lifetime, while ensuring the capital passes to the children on the second death. It is a common structure for blended families and for those who want to preserve the family estate for the next generation.
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On the death of the first spouse, their estate (or part of it) passes into the IPDI trust rather than directly to the surviving spouse. The trustees hold the assets, and the surviving spouse is the "life tenant" — they have the right to receive income from the trust and to use any property within it (e.g., to live in the family home).
The "remaindermen" — typically the children — are entitled to the capital when the life tenant dies. They may wait many years for this.
Typical assets held in an IPDI trust include:
One of the key features of the IPDI structure is its IHT treatment:
This treatment is more favourable than a discretionary trust (which attracts 10-yearly charges and exit charges) because the IPDI is treated as a "qualifying interest in possession" under the IHT legislation.
For the full IHT context, see our inheritance tax UK 2026–27 guide.
An IPDI is typically used in the following situations:
The trustees of an IPDI trust have important responsibilities:
The trustees are often the same as the executors, but they hold a distinct role. Acting as trustee is a long-term commitment that can last for decades.
The life tenant (surviving spouse) has the right to:
The life tenant does not have the right to:
If the will gives the trustees power to advance capital to the life tenant, this can be done — but it reduces what eventually passes to the remaindermen.
On the death of the life tenant, the IPDI trust terminates. The trustees distribute the trust assets to the remaindermen as specified in the will. This is a separate estate administration process — the executor of the life tenant's own estate and the trustee of the IPDI trust must both act.
IHT is calculated on the life tenant's estate including the IPDI assets. The trustees may need to pay IHT attributable to the IPDI assets from the trust fund before distributing to the remaindermen.
For the general estate administration process, see our estate administration checklist, complete UK probate guide 2026, and applying for probate. Related trust structures are explained in our nil rate band discretionary trust guide and bare trust for minor beneficiaries guide. For annual trust tax returns, see our SA900 trust tax return guide. The IHT400 guide covers the IHT reporting process. For the executor's first steps, see our executor first steps guide. For deed of variation options, see our deed of variation guide. Farra can help guide you — get started here.
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