Life policy under Trust

[Jey]

I have recent taken out a "Level Term Life policy " worth £100k. I am married with one children and have a house worth £220k (half still on mortgage). House is on joint names. Can you please advice whether my life policy needs to be written under Trust or otherwise.. Many thanks, MJ

[Arnold Aaro]

If the policy is on your life alone, then you should definately put this in Trust. This will avoid the need to wait for probate to access the funds, and will not count towards your estate for Inheritance Tax purposes.

Arnold Aaron
Financial Consultant
Zurich Advice Network
e mail: arnold.aaron@zurichadvice.co.uk
Tel: (office) 0208 437 2500

[bob.fraser@towrylaw.]

As with all financial issues, the answer depends on the individual circumstances. If you intend to assign the policy to a lender (for example to cover a mortgage), then you should not place the policy in trust.
It would be useful to know if the policy is on your life only, or on joint lives.
Incidentally, I hope that you bought the policy through an independent advisor, since the premiums for life cover vary enormously.
If you email me details of gender and ages of all the lives assured, together with the term of the policy and the premium you are paying, together with any extras such as waiver of premium and/or critical illness, I will run a free comparison for you to see if you could have got it cheaper.

Bob Fraser, MBE, MA, MBA, FSFA
Associate Director
email: bob.fraser@rensburg.co.uk
mobile: 07709430958
office: 02890321002