Trusts
Reasons to Set up a Trust
Speed
If the policy is written in trust, the trustees can make the claim and the proceeds will be paid straight away.
If not in trust there could be significant delay at the time when the money is needed the most.
Nomination of Beneficiaries
Clients often assume that the policy proceeds will be paid out to their families in the event of their death. However, how can they be sure that the proceeds will end up in the right hands? Given that the majority of people in the UK die without leaving a Will or Trust, instead passing to a spouse for example, proceeds can end up being paid to children, parents or even more distant relatives in some cases.
Simply writing the policy in trust and nominating the intended beneficiary on the Trust Form can avoid any disputes or delay in payment of proceeds.
Tax Planning
Proceeds from a Life Policy will be added to the value of the Estate on death for Inheritance Tax purposes. Given that the client would never benefit personally from these proceeds, why not write the plan in trust so that any proceeds can be outside of the Estate on death therefore potentially mitigating future Inheritance Tax.
Free Service & Peace of Mind
No cost & ensures your policy proceeds are put in the right hands at the right time.
Requirements
- 2-4 Trustees - a typical Trustee can be family or close friend, preferably of similar age and circumstances who you can trust to administer your instructions on your death.
- 15 minutes of your time
Role of a Trustee
- To carry out your wishes
- To liaise with the Life Company and beneficiaries' Solicitors to distribute the proceeds of the policy as per your wishes to the chosen beneficiaries.
Please contact us on 0845 051 5102 for more details.
In general, trusts are not regulated by the Financial Services Authority.