If, when you die, your assets are worth more than £325,000 (2012/2013) they will be subject to up to a 40% inheritance tax.
This means that almost half of your family’s inheritance such as property, your money and your life policies will go to the government. A life insurance trust could mitigate this. Like a normal life policy, a life insurance trust pays out when you die, but it is safe from the taxman and from bureaucracy.
What Is A Life Insurance Trust?
A life insurance trust is essentially a legal safety deposit box for your assets. If you place property, money and assets within it seven years before your death, they will be exempt from inheritance tax upon their release. You can specify who your beneficiaries are, and a quick and stress-free release to them upon your death. Once began, a life insurance trust cannot be cancelled.
There are three people needed to create a trust – a settlor, a trustee and a beneficiary. The settlor creates and owns the trust and stores their assets within it. The trustee is the person or body who you appoint to look after the trust and makes sure that the assets reach the right people after you are gone. The beneficiary is the person or persons who you wish to receive your assets.
What Are The Benefits?
In comparison to a regular policy, life insurance trusts mean that no one else other than those who you intended them for can touch your assets. The administrative side is much quicker, so it gets to the people who may need it as fast as possible.
Life Insurance Trusts With Warren & Co
Trusts should only be handled by legal professionals, and here at Warren & Co we are proud to offer you the best in advice and customer service. With comprehensive knowledge of the market, we aim to find an appropriate life insurance trust for your current circumstances. So make an enquiry with us today and we will provide you with the latest quotes from the industry.