A trust is a simple legal arrangement that allows you (the settlor) to gift your life insurance policy to someone else (the beneficiary)

A policy is often put into trust for one (or more) of the following reasons:

• Fast payment to the beneficiaries -  Since the trustees are the owners of the policy, they shouldn't have to go through the probate process in order to make a claim, so the proceeds can be paid out quicker.
• Manage Inheritance Tax - Using a trust should mean that the money paid out from your life insurance will not be part of your estate, increasing the amount passed on to your loved ones.
• Control who recieves the money - Placing a policy under trust can ensure that the money is given to who you intend. For example, if a parent passes away leaving a child under 18, the trustees can use the trust to support the child without giving them full access to the money.

For joint life policies, both of you must agree to place your policy in trust.

For advice speak to your financial adviser.

For more visit our Trust HUB.