Trusts are an imaginary treasure chest, with named trustees owning a key to it. They are completely free and most, if not all providers offer them on Death Insurance policies.
Advantages of writing a policy into trust…
The pay-out of a life insurance policy will form part of your legal estate and could subject to inheritance tax. By writing the policy into trust, the RIGHT MONEY will be paid directly to the beneficiaries you name. RIGHT HANDS.
Writing a policy into trust, will avoid Probate. Probate is an entire process of administering a dead person’s estate. Putting a life policy into trust can ensure the pay-out arrives before probate is granted. Probate can take a very long time; we want your pay-out to come at the RIGHT TIME.
Who can be a trustee?
If you are over the aged of 18, you may act as a trustee. Commonly, if a joint policy, you would act on behalf of each other, and then appoint a further 3 trustees.
If a stand-alone policy, commonly you would appoint 3 trustees. These can family or friends.
All that is needed is three sets of contact details (Name, DOB, Address, Email Address, Phone Number) of who you wish to set up as trustees. Trustees receive a key to the ‘treasure chest’, and upon the policy becoming active read a ‘letter of wishes’ document as to where they want to the pay-out to go.
What happens now?
We will contact your trustees, provide them a quick document regarding the role - and that is that. A very simple process to set up, and one that will benefit you in the future.