A Trust ensures your client’s benefit is paid to the intended recipients by making trustees responsible for the distribution of the funds. Your client needs to choose both trustees and beneficiaries and complete a suitable trust form, which they can do at any time.
Why choose a Trust?
-
Reduce delays at claim stage.
Putting a policy in Trust can reduce delays associated with probate and help avoid IHT (inheritance tax).
-
Suitable for clients with complex estates.
This could include clients who have young children with no guardianship arrangement in place. Or where the primary purpose of the life cover is inheritance tax planning or payment.
-
Terminal Illness claims.
Your client can select for the terminal illness benefit to be paid to the trustees should they need to make a claim for that reason.
We cannot advise whether Beneficiary Nomination or a Trust would be suitable for your client and recommend that they take professional advice if they’re unsure.
Beneficiary Nomination and Trusts can only be selected on single life policies. This includes two policies that are applied for together but remain separate, also known as a dual life policy.