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Living Trusts & Life Insurance Trusts

Enabling the right people to receive the right money at the right time

By putting your life insurance plan in to trust you can ensure that the right money is put in the right hands at the right time by:

  • Avoiding probate delays: a claim can usually be paid quicker than if it was not put into trust.
  • Protecting the plan proceeds from potential inheritance tax.

The benefits of putting a plan in trust

A trust is a legal means that allows a gift to be made to someone without giving them any control over the gifted property.

When a protection plan is put into trust the main benefits are:

  • The insurer can usually settle a claim quicker than if the plan was not put in trust. If you die and your plan is not written in trust your plan will need to go through a process called probate (in England and Wales) or Confirmation (in Scotland) which can take several months. During this time your family could be suffering financial hardship.
  • The plan proceeds may be free of Inheritance Tax. Inheritance Tax is currently payable at a rate of 40% on any part of an estate valued over £325,000 (2009-2010 tax year). When you die any money paid out from your plan is added to your estate meaning you may have to pay Inheritance Tax on it. Setting up a trust means you are removing that part of the plan from your estate, so no Inheritance Tax is normally payable.

Make sure your goals to pass on your wealth are acheived.

One of our recommended advisors will be happy to discuss your personal circumstances with you, including how to set up a trust.

To find out more about life insurance trusts and the advantages of putting your life insurance plan into trust contact us today.