insure & invest

Use A Trust: Trust Advice

Use a trust to protect family or business associates.  Use a trust to save inheritance tax.  Use a trust to speed up payments.

If a life assurance policy is taken out to provide protection for your family or other dependants, the people that you care about will normally need the proceeds of the policy on death quite quickly.

Life of another

Policies can be taken out on a 'life of another' basis.  A wife could take out a policy on the life of her husband so that if he died, she would receive the money immediately as she owns the policy.   There could be problems here if the person taking out the policy died before the person covered under the policy.

Own life policy - delayed pay out on death

If you take out a life insurance policy on your own life and you die, then the proceeds of that policy are deemed part of your estate.  If a policy is not placed under trust for the family, there could be delays in paying out the proceeds whilst waiting for probate to be granted. 

In addition, there could also be Inheritance Tax to pay because the proceeds would form part of the deceased person's estate.

Use a trust

These problems can be easily overcome by writing policies in trust.  It is important that you take advice on the type and suitability of trusts in your particular circumstances.

Request expert advice today or visit our Money Shop and choose your own trust wording.