Trusts

Benefits of writing your Insurance policy into a trust

Having your Life Assurance policy written in trust is one of the most important steps you should take when setting up your Life Insurance but is often forgotten.

The benefits are huge and so are potential pitfalls from not writting in trust.

Normally when a life assurance claim is made, the sum assured will be paid into the plan owners estate. Once the money reaches the estate it may be subject to Inheritance Tax and to the time it takes for probate to organise and redistribute the deceased’s property.

Probate can take many months, and thus the proceeds from the life assurance policy cannot be passed on to the beneficiaries until the process has completed.

By having your policy written in trust, the payout from the Life Insurance is prevented from entering the estate and is instead paid immediately to whoever you nominate.

As a result the cash would be paid out much faster and may not be subject to inheritance tax.

When we recommend a life assurance policy to you, we will also advise whether or not you should place the policy in trust, and where appropriate will arrange for the plan to be placed in a suitable trust

The arrangement of trusts is not regulated by the Financial Conduct Authority

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