Life Insurance Trust

We recommend that every policyholder registers their policy in Trust.

There are 3 great reasons to have a policy written into Trust and we help all our customers to place their life insurance cover in Trust at no additional cost!

Please call our FREEPHONE 0800 644 4468 for no-obligation advice.

 The levels and bases of taxation, and reliefs from taxation, can change at any time. The value of any tax relief depends on individual circumstances.

Trusts are not regulated by the Financial Conduct Authority.

What are the three main benefits of placing your life insurance policy in Trust?

The proceeds from the life policy do not form part of the estate and are excluded from any inheritance tax calculation. This means that the overall value of the estate for the calculation of inheritance tax is reduced. This lowers the potential tax liability and in some cases may result in no tax having to be paid.

The benefits are distributed more quickly than they would be if they were not written into a Trust because they do not form part of the estate. This is particularly relevant if no will is in place, or if an inquest is needed, as in either of these instances payments can be delayed by months or even years in complex cases.

The person who is gifting the benefits of the life policy, known as the settlor, has the peace of mind of knowing that the benefits will go directly to the person/people who they wish to benefit from the Trust.

Part of the award-winning Future Proof service is to assist you in placing your policies in Trust
at no additional cost.

On 1st March 2022, our client service team emailed a Trust form to a couple to complete. Their insurance had recently been approved and the plan started.

By 18th March they had returned the form to Future Proof, however, we had to return it in order for them to make some amendments. Our team will always send detailed explanations about what is required and where the information needs to be inserted.

However, by 12th April they sent the attached letter to us saying they did not fully understand the Trust form and could not afford a solicitor to sort things out for them.

Our team thought it easiest to explain over the phone followed by a detailed email and letter as a reference. A solicitor was not required, our team are fully trained on Trust forms and their completion.

Our clients returned the form on 6th May and by 18th May 2022, the insurer confirmed that the policy was registered in Trust.

Sadly, on 20th March 2023, we received notification that the gentleman had passed away. We received confirmation from the insurer shortly after this, informing us that they had paid the claim. Probate can take months to complete, his wife has the peace of mind of not having to worry about anything financial and focus on her family.

Frequently asked questions

  • In order to complete the Trust Form, you will need to appoint (ideally two) Trustees. They need to be aged over 18 and should be trusted relatives or long term friends. A Trustee can also be one of the beneficiaries of the Trust. Please note that you can change the Trustees at any time by notifying the insurer in writing.

  • If you have any questions whilst completing the Trust documents please do not hesitate to contact us on 0800 644 4468.

    Equally, if the Trustees have any queries regarding their duties in relation to the Trust then please pass them our details and we will be happy to speak to them.

  • If the total value of the deceased’s estate is over the inheritance tax threshold (£325,000 in 2023) then any amount over this would be taxed at 40% (2023). Please note: if you are leaving your main residence to your children, your allowance could increase to £500,000. The estate would not be subject to any tax if being passed to a bereaved spouse. Full and current tax information can be found at Gov.Uk

    The levels and bases of taxation and reliefs from taxation can change at any time. Tax relief depends on individual circumstances.

  • The Beneficiaries are the people you wish to benefit from the policy. If there is more than one please indicate the percentage share of the policy proceeds in brackets next to the name. Please ensure that the total percentage amounts to 100%.

  • Please call us on 0800 644 4468 or email if you would like to discuss writing your policy into a Trust.

    We help all our customers to place their cover in Trust at no additional cost.

    Our offices are open from 9 am – 7 pm Monday to Thursday and 9 am – 5 pm Friday.

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