Having your Life Insurance policy written in to trust is one of the most important steps you should take when setting up your Life Insurance but is sadly forgotten by a vast number of people.

The benefits are huge and so are potential pitfalls from not writing in trust.

So what does writing your policy in trust mean?

Normally when a life insurance claim is made, the sum assured will be paid into the plan owners estate. Once the money reaches the estate it is subject to Inheritance Tax and to the time it takes for probate to organise and redistribute the deceased’s property.

Probate itself can take many months even for a straight forward case and if the Life Insurance is allowed to be subject to it, no benefit would be seen for many months.

By having your policy written in trust, the payout from the Life Insurance is prevented from entering the estate and is instead paid to whoever you nominate.
As a result the cash would be paid out much faster and would not be subject to inheritance tax.

Talk to us about placing your policy in trust.

Moving on UP is a trading style of Ian Straw who is an appointed representative of HL Partnership Limited which is authorised and regulated by the Financial Conduct Authority

The information contained within this website is subject to the UK regulatory regime and is therefore targeted at consumers based in the UK.

*Some of these products are not regulated by the Financial Conduct Authority