Trusts English Law

As a Chartered Financial Planner, I recommended that life insurance policies intended for family protection be written in a trust. No longer just the preserve of ultra-wealthy families they have applications for ordinary expats too. These simple documents are provided free of charge by the best insurance companies. Hereโ€™s why I use them:

1. Speedy Payouts

Writing a life insurance policy in trust ensures that the funds can be accessed quickly. Without the need for probate, which can be a lengthy process, your loved ones receive the financial support they need without unnecessary delays.

2. Tax Efficiency

When life insurance is written in trust, itโ€™s typically outside your estate for inheritance tax purposes. This can significantly reduce the potential tax burden on your beneficiaries, ensuring they receive the intended benefit.

3. Control Over Distribution

By setting up a trust, you can specify exactly how and when the proceeds of your policy are distributed. This control ensures that your beneficiaries receive the funds in a manner that aligns with your wishes, providing peace of mind and financial stability.

Funds held in trust are generally protected from creditors. If you have outstanding debts, the life insurance payout intended for your family is safeguarded and will reach them without being diverted to settle liabilities.

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