Reasons to write your Life Insurance Policy under Trust
What is a trust?
A trust is a legal arrangement which allows you, the settler, to transfer legal ownership of your property (worldly goods) to another person or company. The person or company receiving the property, called the trustee, holds onto it for the benefit of a third party, called the beneficiary.
Why do I need a trust?
Family trusts are often set up at the time a life insurance policy is taken out to ensure the proceeds are:
- Free from Inheritance Tax
- Paid to the beneficiaries without delay
- Held in trust for children until they can handle their own affairs
- Paid to the right people if no will is in place
What next?
To set up a simple family trust you may find the information available from two of our insurers is all you need
For a more detailed and independent understanding of Trusts, Directgov, the government website for financial matters provides an introduction to UK family trusts.
For advice on setting up a family trust or for more complex arrangements you will be able to find specialist advice from The Law Society.