Trusts

Here at AssureLife, we specialise in trust-writing and offer this as part of our comprehensive service. A trust is a legal document and can cost hundreds of pounds to set up with a solicitor, however we are able to do this free of charge for you.

There are a number of benefits to using a trust:

• Having a trust in place potentially saves you from paying up to 40% Inheritance tax on your life insurance payout.
• A trust also ensures the monies are paid to the right people as you can name them now so there are no grey areas if you pass away.
• Also you may have heard stories of insurance companies taking long periods of time to pay out on claims, with a trust the money is paid out right away, as soon as the claim has been approved.

Who’s who?

There are three main parties concerned with a trust. These are as follows:

The Plan-Holder – Usually referred to as the donor or settlor, the ‘plan-holder’ is the individual who has taken out an insurance policy to protect their family and friends should they pass away. It is their responsibility to allocate a trustee and nominate beneficiaries.

The Trustees – Have part ownership of the plan-holder’s policy and therefore have a certain amount of administrative rights. Whilst they cannot personally make any changes to the policy independent of the plan-holder, they may be asked to acknowledge changes they themselves have made. Additionally, it is your role as a trustee to ensure that the terms of the trust are carried out in accordance with the plan-holders wishes, once they have passed away.

The Beneficiaries – The persons who are, or may become, entitled to receive the plan proceeds are called the ‘beneficiaries’. A trustee can also be elected as a beneficiary and discretionary trusts enable changes to be made to beneficiaries if required at a later date.