Life insurance
Guide to trusts
Talking about trusts is a must.
Our guide will help you explain the
key benefits of trusts to your clients.
Talking about trusts is a must.
Our guide will help you explain the
key benefits of trusts to your clients.
-
Give your client control over the beneficiaries.
By putting a policy in trust, the policyholder has more control over where the payout goes. They can name any number of beneficiaries and decide what percentage of the payout each beneficiary receives.
-
Imagine a family waiting 12 months for a payout?
On average, in England and Wales, it takes between nine and 12 months* to obtain the Grant of Probate and to complete the estate administration process.
By putting the policy in trust, the payout doesn’t form part of the deceased estate so it bypasses probate, and the beneficiaries get their money immediately.
-
Don’t leave your client’s children with a tax bill.
Whilst Inheritance Tax is not charged if the beneficiary of the life insurance payout is a spouse or civil partner, it is charged if the beneficiary is a child or other family member.*
However, if the policy is written in trust, the payout falls outside of the estate and is not usually subject to Inheritance Tax irrelevant of the beneficiary.**
** Any references to the tax treatment for life insurance trusts are based on The Exeter’s understanding of the legislation and HM Revenue and Customs (HMRC) practice at the time of publication. Both of these are likely to change in the future, and a liability to tax may arise under an existing arrangement.
-
Trust us to makes trusts easy.
As your client's adviser you can quickly and easily put their Real Life policy in trust when they apply using our digital process.
So, there’s no hassle, no paper and no need to provide evidence of the trust at the point of claim.
Trust forms to get you started
There’s more to explore in the Real Life toolkit
Client profiles
Our client profiles will help you understand who Real Life is right for.
