WHAT IS A TRUST
Trusts are a legal arrangement that let you leave assets to friends, relatives or whoever you pick to be your beneficiaries.
WHY SHOULD I PUT MY LIFE INSURANCE IN TRUST?
There are many reasons why putting life insurance in trust is a popular option. Here are some of the ways you can benefit from a life insurance trust.
Control over your assets – You can direct who benefits and how. Putting life insurance in trust gives you greater discretion, as you can decide who to appoint as your beneficiaries and trustees. Setting up a trust is especially important if you’re not married or in a civil partnership, as otherwise, your assets may not transfer to the intended recipient.
If a life insurance policy is written in trust, the benefits payable under it may be protected from third party creditors or anyone with a claim on your estate If you don’t have a trust, your money might be used to pay off outstanding debts.
Faster access to your money – without a trust, when you die your would-be beneficiaries would need to obtain probate, which can cause delays. With a trust in place, your loved ones could receive the inheritance within a couple of weeks of the death certificate being issued.
Protect your beneficiaries from Inheritance Tax – writing life insurance in trust means the money paid out from your policy should not be considered part of your estate and your beneficiaries may not pay inheritance tax on the benefit.
SPEAK TO CPS FINANCIAL NOW TO DISCUSS HOW TRUSTS CAN MAXIMISE THE BENEFITS OF YOUR LIFE INSURANCE.