A trust is a legal means that allows a gift to be made to someone without giving them any control over the gifted property.

Reasons to Set up a Trust


If the policy is written in trust, the trustees can make the claim and the proceeds will be paid straight away. If not in trust there could be significant delay at the time when the money is needed the most.

Nomination of Beneficiaries

Clients often assume that the life policy proceeds will be paid out to their families in the event of their death. However, if the plan is not in trust, the proceeds will be paid to the deceased's estate. How can they be sure that the proceeds will end up in the right hands? When you are setting up a trust you have control over who will administer any money paid out for a claim (the trustees) and who will benefit from any money paid out (the beneficiaries). This can avoid any disputes or delays in payment of proceeds.

Simply writing the policy in trust and nominating the intended beneficiary on the Trust Form can avoid any disputes or delay in payment of proceeds.

Tax Planning

If not placed in trust, proceeds from a Life Policy will be added to the value of the Estate on death for Inheritance Tax purposes. By placing the plan in trust some or all of the proceeds of the policy will be paid direct to the beneficiary and therefore may not be liable to Inheritance Tax.

Peace of Mind

A trust ensures your policy proceeds are put in the right hands at the right time.

Whenever we provide you with a recommendation for a life or life and critical illness cover, we will also advise whether you should place that cover in trust and arrange for this to be done where appropriate.

Trusts are not regulated by the Financial Conduct Authority.

Contact us for more details.