Our guide to writing your life insurance in trust
What is a trust?
A trust is a legal arrangement that lets you transfer ownership of your life insurance policy to a trust. This trust is overseen by a trustee, who you designate, and it dictates how the life insurance payout is managed and distributed after your death.
The importance of trusts
Life insurance can be a big help, but if your estate exceeds £325,000, a chunk of the payout could vanish to inheritance tax. By placing your policy in a trust, you keep the payout out of your estate’s taxable value, ensuring more goes directly to your loved ones.
– 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.
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.
Complete your application online and take a note of the policy reference at the end of the application. Quote this reference in all correspondence. Print your chosen trust form, complete the relevant sections and post it directly to AIG at:
AIG Life Ltd
PO Box 12010
Harlow
CM20 9LG
AIG Trust Guide
AIG Bare Trust (single life)
AIG Bare Trust (joint life)
AIG Discretionary Trust (single life)
AIG Discretionary Trust (joint life)
AIG Expression of Wishes Form
Complete your application online and take a note of the reference number given at the end of the application. Quote this reference in all correspondence. Print your chosen trust form, complete the relevant sections and post it directly to Legal & General at:
Legal & General Assurance Society Ltd
City Park
The Droveway
Hove
BN3 7PY
Legal & General Trust Options
Legal & General Absolute Trust Guide
Legal & General Absolute Trust Form
Legal & General Discretionary Trust Guide
Legal & General Discretionary Trust Form
Legal & General Survivors Discretionary Trust Guide
Legal & General Survivors Discretionary Trust Form
When you apply with LV= you will complete some basic questions online and then book a time to receive a call from LV= to answer the medical questions. Your trust form should be posted directly to LV= after the telephone medical interview. You will need to quote your policy reference number which will be given to you by LV=.
LV=
Pynes Hill House
Rydon Lane
Exeter
EX2 5SP
LV= Guide to trusts
Fixed Trust Guide
Fixed Trust Form
Flexible Trust Guide
Flexible Trust Form
Split Trust Guide
Split Trust Form
Once you have completed your application with Royal London you will be given your plan number. Please quote this number and send your completed trust form to Royal London at:
Royal London
1 Thistle Street
Edinburgh
EH2 1DG
Royal London Gift Trust Bare
Royal London Gift Trust (Joint Life First Event) Bare
Royal London Gift Trust Discretionary
Royal London Gift Trust (Joint Life First Event) Discretionary
Royal London Split Trust Bare
Royal London Split Trust (Joint Life First Event) Bare
Royal London Split Trust Discretionary
Royal London Split Trust (Joint Life First Event) Discretionary
When you apply with Vitality Life you will complete some basic questions online and then book a time to receive a call from Vitality Life to answer the medical questions. Your trust form should be posted directly to Vitality Life after the telephone medical interview. You will need to quote your policy reference number which will be given to you by Vitality Life.
Vitality Life
Stirling
FK9 4UE
Vitality Life Trust Guide
Vitality Life Discretionary Trust Form
Vitality Life Absolute Trust Form
Vitality Life Deed of Appointment of Additional Trustees
Vitality Life Letter of Wishes
Complete your application online and take a note of the reference number given at the end of the application. Quote this reference in all correspondence. Print your chosen trust form, complete the relevant sections and post it directly to Zurich at:
Zurich Assurance Ltd
Tri Centre One
New Bridge Square
Swindon
SN1 1HN
Zurich Absolute Trust Deed
Zurich Discretionary Trust Deed
Zurich Discretionary Survivorship Trust Deed
Zurich Discretionary Split Trust Deed
Zurich Discretionary Split Survivorship Trust Deed