Placing a life assurance policy in trust has many advantages including speed of payment, creditor protection and potential inheritance and income tax mitigation. Trusts have many generic names including; flexible trusts, married woman’s property act trusts, split, absolute and bear trusts, but typically there are just three principle types of trust.
Our trust service (complimentary to our clients)
We provide advice on the trusts issued by life assurance companies for use with life assurance polices, critical illness insurance, key man and directors share protection. Our service will help you help you decide if it is appropriate to place your policy into trust, find you a suitable trust and help you complete all of the documentation.
Probate
On your death your assets pass into your estate and are subject to probate. Before distributing your estate your trustees, or solicitors, must first obtain grant of probate. This process can take up to a year and no assets may be distributed before probate is granted. Using a suitable trust will avoid probate and allow policy benefits to be paid on production of a death certificate, normally within days of the death of the policy owner.
Inheritance tax
Part of obtaining probate is to calculate and settle any inheritance tax due. Utilising a suitable trust can remove the value or the death benefit of the policy from the estate thereby avoiding inheritance tax. Use our inheritance tax calculator to see if you have an inheritance tax liability.
Beneficiaries
A beneficiary is someone, or group of people, who you want to receive the policy benefits. As the policy owner you can appoint anybody as a beneficiary, including yourself. If the trust is designed to allow changes you can amend your chosen beneficiaries in the future provided it has been set up correctly.
Trustees
You should appoint at least two trustees. Normally the policy owner is automatically included as the first trustee and additional trustees can be appointed and removed at any time. Trustees may also be beneficiaries but must be over 18 years of age.
To request a quote
Complete our online life assurance contact form or call one of our specialist life assurance advisers to request your free life assurance quote. As an internet based firm of Independent Life Assurance Experts and we provide advice over the telephone, via email and through the post. Dealing with you in this way allows us to get information to you quickly and accurately. We will also, at your request make personal visits to meet with you.
Help & advice
There are many different options to consider when choosing life assurance and it makes sense to take advice from a qualified specialist who is independent and can offer you products and services from the whole of the market place. Please call one of our independent advisers or contact us to discuss the different options available to you and to request your life assurance quote.
