Most of us have taken out some form of life cover without putting it into trust; but why would you want to? Well,
- It doesn’t cost anything to arrange;
- It could save you as much as 40p in every £1; AND
- It could save time and reduce costs.
If you would like more information on how Forces Family Finance can help you avoid probate delay and make your estate more tax efficient, please read on…
Setting up a trust is simple and easy to do. Placing your policy into trust allows you to say how the money should be paid and more importantly, ensures that the people of your choosing receive it all, just as you intended. This is because whatever is placed in trust falls outside of your estate and is not subject to probate or to claims from third parties. And don’t worry, any money which you become entitled to on the diagnosis of a critical illness will still be paid direct to you even though a trust has been put in place.
- Therefore, putting a trust in place means that:
- Your children will be financially secure and well looked after;
- The person you live with will never have to worry about paying the bills;
- Your family can make choices on where to live rather than having to sell the family home to make ends meet;
- Your family do not have to borrow money unnecessarily to make ends meet;
A trust can also be used to reduce your exposure to inheritance tax. Inheritance tax is currently charged at 40% on any part of your estate which exceeds, possibly, as little as £325,000 (2014/2015). By placing your policy in trust ensures that any money paid out after your death will not be used to pay unnecessary taxes. So, by taking this simple step you may achieve significant tax savings increasing the amount available to others.
The great thing about using a trust is the time it saves. The process which the trust has to follow allows any claim to be dealt with quickly making the money available for use within weeks rather than months, which could be the case with Probate.
In a nutshell, a trust gives certainty and peace of mind because it creates financial stability and choice when it is needed most. Forces Family Finance are here to help you choose the right trust and to complete the paperwork, free of charge, on any policy even if the original policy was taken out with someone else. To us, you are never just a number!
If you would like to see how we can help save you money and provide ongoing peace of mind for those you care for most, please contact us on firstname.lastname@example.org or 0330 3322 614.