Research by a discount broker has highlighted the fact the 3 out of 4 people who have life insurance policies have not put them in trust meaning that the benefits on death may not go to where they would want them to go.
Our view:
A trust is relatively a simple document which means you have given the benefits of what you own to somebody else. A trust can protect what you own from creditors and ensure that what you own goes to your loved ones. Certain types of trust will even mean that no Inheritance Tax is paid should you life insurance policy pay out. This could save your family up to 40% of the value of the policy. This may not sound much but if you had a £100,000 policy and your family then had to write a cheque for £40,000 to the Inland Revenue - we think the feeling would be different. Contact us for advice on trusts - it is not to late - even your existing policies may be put in trust. Visit the Help Zone for impartial advice from us .Prefer low cost guidance? Try the Ask An Adviser Service. It starts from just £9.99.