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| Main
Reasons To Use a Trust |
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| 1 - A trutst makes sure that
the money paid out from the plan goes to
the people the settlor wants to benefit
from it. When a trust is set up, the
settlor lists all the people they want
to share the money from the trust. The
settlor can even indicate what
proportion of the money they would like
each individual to receive - for example
John 25%, Jane 25% and Mark 50%. |
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2 - The life insurance
company can usually pay a death claim
more quickly than they could if it were
not put in trust. If a life assurance
plan is in trust, it is no longer part
of the settlor’s estate. So if they die,
the trustees claim on the life assurance
and
the death benefit money is paid directly
to the trustees. If a life assurance
plan is not in trust, the amount of
money a person has as life assurance is
added to the rest of their estate if
they die during the plan term. This
means that the people that are
to distribute the estate would need to
get a grant of probate before the
insurance company could pay out any
money. This can take several months. |
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| 3 - The money the plan
pays out may be free of inheritance tax.
If the plan was put into trust, it isn’t
included in the settlor’s estate when
the settlor dies, so there is no
immediate inheritance tax to pay.
However, if the money is kept in the
trust until the next 10th anniversary of
the trust, some inheritance tax may be
payable. To find out more about this,
fill in the enquiry form and a qualified
financial adviser will help with your
unique circumstances. |
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- Cover starts from as little as *£5 per month
- Quotes are FREE and without obligation
- We can put policies in trust for
free.
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| We compare the leading insurers including: |
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Useful Articles: |
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*£5.00 Per month quote based on 25 Year
old female Non Smoker for £102,740
guaranteed level life cover only for
term of 25 Years. |
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