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Why it is important to complete a life insurance trust

Our specialist claims team was contacted recently to notify us initially of terminal illness claim, which sadly is now a life insurance claim.

Susan and Neil* have lived together as a couple for 21 years. Like many couples, they have not married. They have never got around to arranging a Will and have no Trust in place for their individual life insurance policies.

Neil was diagnosed with terminal cancer by a McMillan nurse a week ago on the 8th of January – at this point, our clients made contact with a solicitor to put a Will in place. The Will was prepared by the solicitor and was posted to the clients to sign. Unfortunately, the Will arrived in the post for them to sign on 15th January. Sadly, Neil past away on 13th January.

Susan is not considered the Next of Kin in the eyes of the law. This means she is not automatically entitled to the Insurance payout or any other of Neil’s assets. Without a Will in place and in the absence of a Trust to specify who Neil wanted to be the beneficiary of the life policy, it will now be decided by a legal process called Probate. This could mean that the money is received by Neil’s family members and not Susan.

We are all busy these days and it is all too easy to put off sorting out things like arranging a Will or writing a life insurance policy into a Trust.

This is a good example of why it is really important. Watch our video to learn more.

It’s worth bearing in mind, everyone’s situation is different. If you have any questions or would like some no-obligation advice, the best thing to do is call one of our friendly advisers.
They would be happy to explain your options.

Wills and Trusts are not regulated by the Financial Conduct Authority.

Please note that Will writing is not a service which Future Proof or St. James’s Place offer. If you require a Will or want to review your Will, we suggest you contact a qualified Will writer or Solicitor who can provide you with this service.

Call our award-winning team on 0800 644 4468

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* Names have been changed to protect their identity.

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