Yes, by writing life insurance in trust this is one of the best ways to protect your family’s future in the event of your death. A trust is a legal arrangement which allows the owner of a life policy (the settlor) to give their policy to a trusted group of people (the trustees), who look after it. At some time in the future they pass it on to some people from a group that the settlor has decided (the beneficiaries).
When a life policy is looked after in this way, it is said to be ‘in trust’. The life policy which is in trust, and any payment received from the life policy are called the trust fund.
It should help to ensure that the money paid out from the life policy can be paid to the right people quickly, without the need for lengthy legal processes. When you die, your personal representatives will need to obtain probate so that they have the authority to deal with your estate.
In England and Wales either a ‘grant of probate’ or ‘grant of letters of administration’ is issued to your personal representatives. This process takes time and if you die without having made a will it takes even longer. Since the trustees are the owners of a policy placed in trust they do not have to go through this process in order to make a claim.
Use our Online Trust Hub to help you choose the right type of Trust for you. You can even enter your details online so the Trust form is ready to be printed and sent back to us.