Setting up Trusts
Deciding how to set up a Trust that will suit your needs can be a complicated process, but they can provide many benefits for you and your loved ones should you become seriously ill or die.
A Trust is defined as a legal means that allows a gift to be made to someone without giving them any control over the gifted property. The main benefit of putting a plan such as a Life Insurance plan in Trust, is that a Trust can be used to put the right money in the right hands at the right time.
If you were to die and your plan was not written in Trust your family would need to go through a process called Probate in England &Wales or Confirmation in Scotland, which could take several months and could result in financial hardship for your family.
By putting your plan in to Trust it will ensure that your beneficiaries are free from paying any Inheritance Tax on the insurance paid out in the event of your death - Inheritance Tax is payable at a rate of 40% on an estate of £325,000 and over. Setting up a Trust will remove the Life Insurance plan from your estate.
Benefits of putting your Life Insurance plan in Trust include:
- Ensuring your estate goes to the right people at the right time, ensuring you have peace of mind for you and your loved ones
- Is free
- Could save you 40p in every £1 of your estate
- Not having the stress or months of legal procedures and not having to pay Inheritance Tax on the life insurance payment
Protect you and your family today. For more advice on how to put your Life Insurance in to Trust call free on 0800 328 5773 and one of our Advisers will be happy to help.