Trusts

A trust is a legal means allowing a gift to be made to someone without giving them control over the gift.

There are a number of benefits to placing a protection plan in trust. Putting your protection plans in trust ensures that the right money gets put into the right hands at the right time. The advantages of doing this include product providers paying your claim more quickly than if the policy was not in trust and the plan proceeds may be free of inheritance tax depending on the circumstances.

Putting your protection plans in trust means you can avoid the need for probate or confirmation, providing there is at least one surviving trustee following your death. Since the trustees are the legal owners of the plan, they are able to deal with it immediately and make sure funds are distributed immediately in accordance with the trust’s requirements.

When arranging protection for you we will always advise whether it is appropriate to place the policy in trust for you.

In general Trust advice is not regulated by the Financial Services Authority.