An insurance policy written in Trust lets you decide where your money will go in the event of your death, i.e. who will benefit from the money and how much they will get. Setting up a trust ensures that the money is passed directly to your beneficiaries, keeping it outside of your estate and without reference to your will or the taxman. There will be no need to apply for probate so the process of getting the money to your beneficiaries will be significantly decreased, by on average about six months. Finally setting up a policy in Trust will ensure that the money is not subject to Inheritance Tax.
What is a Trust
What if I do not write my policy in Trust
Use of Trusts with An Insurance Policy
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There are no benefits to writing a stand alone Critical Illness policy in trust as the benefits are payable to yourself; there are however benefits to writing a combined Life and Critical Illness policy in trusts. The benefits of placing a combined Life and Critical Illness policy in trust are exactly the same as it would be for Life Insurance, however if you needed to claim on the Critical Illness side of the insurance policy, you would receive the benefits instead of your nominated beneficiaries.
The benefit from the policy will form part of your estate. Upon the event of a claim, the people in need of the money would probably have to apply for probate, which incurs costs of its own and can often take around six months to complete. Then if the total value of the estate is over the inheritance tax barrier, the amount over the barrier would be taxed.
Is there a benefit writing a Critical Illness policy in Trust
Life Insurance Basic Principles
Term Insurance
Accident Sickness & Unemployment (ASU)
Critical Illness
Insurance
Insurance
Use of Trusts
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CharltonOnLine.com is a trading name of Charlton Marketing and Development Ltd.
CharltonOnLine.com is a trading name of Charlton Marketing and Development Ltd.
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Insurance Policies not normally written in Trust
Joint life insurance policies don't normally require to be written in trust as they pay straight to the survivor.
Permanent Health Insurance (PHI)
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