Meet Amy Weber, our Customer Services Manager here at Reassured. Below, Amy, runs through writing your life insurance in trust and what the benefits to you could be.
We offer all of our life insurance customers support via our free trust service, providing help and guidance where needed.
1) What is writing your policy in trust?
Writing a policy in trust lets your insurer know exactly what you’d like to happen to the policy pay out in the event that you pass away.
By specifying someone you trust (a trustee) to look after the funds, the insurer legally understands exactly who to pay and how you’d like the funds to be split.
It’s important you make an informed decision when naming your trustee/s, as you’re signing over all rights to the policy to them.
Often, policyholders name either their partner or children as trustees.
2) What are the benefits?
When a policy is written into trust it avoids forming part of your legal estate, therefore the policy benefit is not subject to inheritance tax, (which is 40% of anything over the inheritance tax threshold).
By not forming part of your estate you are also able to avoid probate, as funds are paid directly from your trustee/s to your beneficiaries. Meaning your dependents should obtain the pay out quicker.
Lastly, writing your life insurance in trust also allows you to specify exactly how and when you want the funds to be distributed.
3) Does it cost anything?
No. Writing a policy in trust is a free service provided by the majority of insurers.
As a broker, we are trained to talk you through the trust application process. Our service is also offered completely free of charge.
However, trusts can sometimes be a complex process and if you choose to seek further financial advice, there may be a cost.
Please note, our trust service will never advise you on what to do. Although, we will provide you with enough information to help you make an informed decision.
4) Why do so few people write their policy in trust?
On first viewing, the application forms can appear pretty daunting, complex and full of legal jargon.
It’s easy for people to put it to one side, with the best intentions to come back to it later. However, in reality, only around 6% of policyholders write their policy in trust.
From our experience, there also seems to be a general lack of understanding about the process of trusts, as most customers will not have encountered them before.
That’s where we can help, explaining the jargon and simplifying the application process.
5) What service does Reassured provide?
We offer a simple, non-advisory run-through of the trust application form, without any complex legal phrases free of charge. We can also help explain any jargon you don’t understand.
When you receive your introductory pack in the post from Reassured, it will contain a trust form.
If you feel like this is something you’d like to chat to us about, give our customer service team a call 0808 168 2025, (selecting option 1, then option 2).
6) Do you help customers with the application process?
Yes. Our customer service team are happy to help with absolutely any question or query you might have.
The most important thing for us is that you feel you have made an informed decision, you are able to ask any questions and that you have complete peace of mind.
7) What are the common pitfalls with trusts?
While we try and make the process as simple as possible, it’s important to remember that trust law is detailed and complex, especially when it comes to inheritance tax and the probate process.
Assigning someone as a trustee essentially means you are giving them legal rights to the money, so it’s vital that you are happy with the decision you’re making.
When it comes to ‘absolute’ trusts you are unable to make changes if your circumstances change.
However, we only provide support when applying for ‘flexible’ or ‘discretionary’ trusts, which allow you to make changes at the discretion of the trustee/s.
8) Why should a customer use Reassured to help fill in their trust form?
We understand that talking about the idea of you not being around anymore can be stressful, so it’s our job to make the process as quick and simple as possible.
Plus, even if we say so ourselves, we are really good at what we do. It’s our passion to help and support our valued customers as best we can.
9) What do you like most about your role at Reassured?
I have been at Reassured for 4 years now and I can honestly say that everything we do is with the customer in mind.
Not a day goes by where I do not experience an example of fantastic customer service or positive client outcomes.
This is exemplified by our ‘Excellent‘ Trustpilot score of 9.6/10 from a staggering 13,500+ reviews!
10) How can people get in touch with Reassured’s free trust service?
Our dedicated (and friendly) customer service team can be reached between 9am-5.30pm on 0808 168 2025, (select option 1, then option 2) or email firstname.lastname@example.org.
It’s our job to give you the facts, so you can make an informed decision on what is right for you and your loved ones. We are here to help.