Can I leave someone a 'life interest' in property rather than outright ownership in my will?

Yes. A life interest (sometimes called a "life estate") allows a named person to use and benefit from property during their lifetime, with ownership passing to another person (the "remainderman") on the life tenant's death. Life interests are commonly used in blended family situations to provide for a surviving spouse while ensuring assets pass to children from a prior relationship.

For real property, a life interest can be created directly in the will. The life tenant typically has the right to live in the property, while the remainderman holds the reversionary interest. The life tenant is usually responsible for taxes, maintenance, and insurance — though your will should spell this out clearly to avoid disputes.

For assets like cash and investments, a similar outcome is achieved through a trust — the surviving spouse receives income from the trust during their lifetime, with the capital distributed to the children on the spouse's death. This is often called a "spousal trust" or "life interest trust."

Life interests and trusts that span a surviving spouse's lifetime can last many years, which means the trustee must actively manage assets for a long period. Choosing a capable and trustworthy trustee (which could be a trust company) is essential. A lawyer can help draft provisions that clearly define the life tenant's rights and the remainder beneficiaries' interests.