What is a Trust?
Placing your Life Insurance policy into a Trust could aid a future claim, and is usually available free of charge via your chosen Insurer.
A Trust is a legal document that helps to keep money from a policy claim separate from your estate. Unlike a Will, it can help you to mitigate inheritance tax and could also speed up a claim. A Trust allows you - and whoever you choose - more control over what happens to your money after your death.
With a Trust you can have more control of what happens to your potential payout and decide who the money goes to:
- The money can go more directly to the people you choose, and could bypass a will or inheritance tax
- Your 'beneficiaries' can be paid faster - Life Insurance could pay out in a week, rather than months without a Trust
- Trusts are usually quite straightforward to arrange through your chosen insurer, for free
Life insurance trusts - they make sense
Understanding inheritance tax and life insurance
Want to know how you can reduce your tax bill? Get the details in this short guide.