If you write your Budget Life Insurance policy into Trust, you can choose who distributes the pay-out of the policy. A policy in Trust could speed up the process of pay-out after a claim and is not generally considered for inheritance tax purposes as part of your estate. If your policy is not written into Trust, dealing with the policy and the deceased’s estate could be more difficult.
If you have a Single Life Insurance Policy, you can write it in Trust leaving it to chosen beneficiaries. We provide a free Trust Tool to all our customers, which means that you can be sure that the people you want to receive the proceeds of your policy do.
The benefits of setting up a Trust include:
- If your estate is worth more than £325,000 your beneficiaries are less likely to have to pay the inheritance tax, which is currently at 40%. This means that your family will receive the whole pay-out
- If you leave children under the age of 18 behind, you’ll be able to nominate a Trustee(s) to look after the Trust until the child turns 18 (or the age that you specified within the Trust)