– Reduced Inheritance Tax: The value of your life insurance policy could be excluded from your estate for inheritance tax purposes, potentially saving your beneficiaries a significant amount of money. The current inheritance tax-free threshold in the UK is £325,000, so if your estate is worth more than that, inheritance tax would be due on the excess amount. By putting your life insurance policy in trust, it wouldn’t be counted as part of your estate for inheritance tax purposes.
– Faster Access to Funds: Probate, the legal process of dealing with someone’s estate after they die, can take months to complete. This can delay your beneficiaries from receiving the money from your life insurance policy. If you put your policy in trust, the money can be paid out to your beneficiaries much quicker, which can be helpful for covering immediate expenses.
It’s important to note that putting your life insurance policy in trust isn’t always necessary. Moneyworld cannot offer any financial or legal advice and we recommend you seek advice if you are unsure about whether a trust is suitable for you.
How do I place my life insurance policy in trust
There are a variety of trust forms to meet your specific requirements. Explore the options below, where you’ll find detailed instructions for each insurer and the full selection of available trust forms and guides.
