Simmonds Mortgages

Mortgage Brokers covering Berkshire and beyond

Call: 01344 225 149 or 07979 690 056

Writing your life insurance cover in trust

By |

Many people are unaware that a life insurance policy is an asset that can be placed in trust.

A trust is a legal entity that allows you to put aside assets for a beneficiary. You can nominate one or more trustees to manage the trust until the beneficiary is ready to inherit.

 

Minimising IHT

Normally, a life insurance payout is considered as part of your estate, which will be liable to IHT on anything exceeding the £325,000 threshold. When you write your life insurance in trust, however, the payout won't be included in the value of your estate, leaving more for your loved ones.

 

Greater control 

Writing your life insurance policy in trust gives you more control over the payout. This is very important if you aren't married or in a civil partnership; otherwise, you intended recipient may miss out. 

 

Trusts can be inflexible 

However, one of the downsides of trusts is their inflexibility. Once a policy has been put in a trust, it usually can't be taken back out again. You could even risk invalidating your policy by trying to amend a trust.

 

Seek advice

If you are unsure whether or not to write your life insurance in trust, talk to us. We can guide you through the pros and cons in light of your circumstances.

 

As with all insurance policies, conditions and exclusions will apply

 

We can help you!

If you would like more information or expert help with your mortgage or insurance queries, please call us on 01344 225 149 or 07979 690 056. Alternatively please send us an email at info@simmondsmortgage.co.uk

 

simmonds_mortgage_service_final_logo.png

 

Simmonds Mortgage Services is an appointed representative of Stonebridge Mortgage Solutions Ltd and can source the most appropriate cover from its panel of insurers with a free review of you overall protection and insurance needs. As with all insurance policies, conditions and exclusions will apply.

What our Customers Say...

Your home may be repossessed if you do not keep up repayments on your mortgage.

Simmonds Mortgage Services Ltd is an Appointed Representative of Stonebridge Mortgage Solutions Ltd, which is authorised and regulated by the Financial Conduct Authority.

Registered Office: Simmonds Mortgage Services Ltd, Lexham House, Forest Road, Binfield, Berkshire, RG42 4HP. Registered Company Number: 1152 8784 Registered in England & Wales.

There may be a fee for arranging a Mortgage and the precise amount will depend on your circumstances. This will typically be £399.00 paid once the mortgage offer has been confirmed.

There may be a fee for arranging an Equity Release or Lifetime Mortgage and the precise amount will depend on your circumstances. This will typically be £799.00 and is due on completion of the mortgage.

To view our Privacy Statement, please click here.

To view our Cookie Policy, please click here.

To view our Data Protection Policy, please click here.

© . All rights reserved.