Life Interests: An Introduction

Learn the fundamentals of life interests and what the recent TR 2006/14 update means for tax and estate planning.

In this session, we cover:

• Definition of Life interests

• Key components

  • Asset or property

  • Original owner

  • Life interest and life interest owner

  • Remainder interest and remainder owner

  • Trustee

• Creation of a life interest

  • Equitable life interest vs legal life interest

• Same or similar rights

  • Right of occupation

  • Absolute gift

  • Testamentary trusts

• Tax considerations

  • Possible tax issues

    • CGT events to consider

    • Main residence exemption

  • Who are the people being affected?

  • Division 128 of ITAA 1997 – Effect of death

  • Disclaimer of the life interest

  • Surrender of the life interest

  • Right of occupancy

  • Death of the life tenant

  • Contention of the life interest

Date recorded: 13 August 2025