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Policy in Trust

Putting a life insurance policy in trust

When you have invested time and gone to the expense of arranging life insurance to take care of your family after you’re gone, it makes sense to do what you can to ensure they get maximum benefit from your investment.

Putting something ‘in trust’ simply means setting aside a benefit for a named person/persons in a legally endorsed manner. This benefit is looked after by a trustee until the time comes for it to be released. As an example, you might want to leave your house to the children, but want your spouse to look after it until they are 18 or 21.

There are many benefits to putting your life insurance policy in trust, most notably sidestepping huge inheritance tax bills and bypassing the lengthy probate process. Despite this, only 6% of policyholders actually have their policy put in trust.

Is it difficult to put your policy in trust?

No. Putting your policy in trust need not be complicated or even expensive and it could make all the difference to your loved ones when they come to make a claim.

Your insurance provider should be able to provide you with this option for free when taking out the insurance policy.

Any assets can be written in trust, including your life insurance policy. By putting it into trust, it becomes the property of your beneficiaries right away, (no need to wait for probate to be granted). Although they cannot gain access to the money until after your death.

The trustee is usually your life insurance company, and they will retain the money until a claim is made.

Key benefits to putting a policy into trust:

Reduce inheritance tax liability

Avoid delays due to probate

Keep control of your policy

Important considerations with trusts:


Talk to our Reassured consultants today on 0808 168 2025 about putting your life insurance policy into trust and how it could help protect your dependents. Alternatively Start Your Quote online today.