With regards to Protection policies, a Trust is a document that allows you spell out what you want to happen to proceeds from a policy.

Placing a life policy in trust can help make sure the proceeds of your policy are used as you intended.

There are three main benefits for putting a policy in trust:

  • Control

    You can help to ensure that the right people receive the money from the life policy

  • Faster payment of the money

    Using a trust should help to ensure that the money paid out from your life policy can be paid out to the people of your choice quicker.

  • Potentially avoiding the policy proceeds being subject to Inheritance Tax

    When a life policy is not held in trust, it will normally be considered part of the estate meaning it can be subject to Inheritance Tax. Using a trust should mean that the policy is not part of the estate and should therefore not normally be subject to Inheritance tax *

To summarise, Trusts are all about ensuring the right money goes to the right hands at the right time.

* Neither Hadley-Clarke Mortgages nor PRIMIS/First Complete Ltd is able to provide taxation advice. Should you require advice on taxation matters you should consult with a suitably qualified professional. The Financial Conduct Authority does not regulate Trusts.

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