• Home
  • News
  • UK investors willing to spend less to invest more

Should I write my life insurance in trust?

Get greater control over your assets

Should I write my life insurance in trust?

When taking out life insurance, you’ll want to set it up so that your heirs receive as much as they can, as quickly as possible when it pays out. Writing your policy in trust is a great way to do this. A trust is a straightforward legal arrangement which allows you to leave assets to the people you want to benefit – the beneficiaries.

A trust is managed by a trustee, or trustees, until the time comes for the benefit to be paid out. Benefits of a trust A trust gives you greater control over where your assets end up and is especially important if you’re not married or in a civil partnership. Writing your life insurance policy in trust also ensures that under current HMRC rules and in most circumstances, the policy proceeds on death will not form part of your estate for Inheritance Tax purposes. Another benefit is that the policy proceeds can be paid directly to your beneficiaries, without having to go through probate.

As probate can be a lengthy process, with any Inheritance Tax having to be paid before probate can be granted, having a trust allows your beneficiaries faster access to the policy proceeds.

Talk to us If you would like advice about putting your life insurance in trust, talk to us. We can guide you through the process.