February 10, 2015
Why would you need to write a Life Policy in Trust?
- To ensure that the proceeds of the Life Policy are paid out immediately without the need to wait for a grant of probate;
- To ensure that on your death, the proceeds of the Life Policy do not form part of your Estate for Inheritance Tax purposes
- To ensure that the proceeds of the Life Policy reach your chosen beneficiary (ies).
If your Life Policy is NOT written in trust it is likely:
That there may be a delay in the payment of the proceeds of the Policy on your death whilst you await the Grant of Probate; and
The proceeds of the Policy will form part of your Estate for Inheritance Tax purposes and therefore your Estate may have more tax to pay;
That without a will the proceeds paid out by the policy on your death may be distributed to someone other than you had intended. You may also wish to take this time to consider making a will, if you have not already done so.