How To Keep Your Financial Legacy Safe With A Life Insurance Trust
You might be the main breadwinner in the household and need to be sure that if the worst happens, your family will be able to carry on financially. But the last thing you want is almost half of your assets - your property, your money and your life policies - being swallowed up by the Government: but if your assets are worth more than £325,000 (Tax year 2015-2016) that's exactly what can happen.
So you need to be able to lock up your life policy securely so as when you do die the taxman doesn't raid the payout your family should receive. The solution is a life insurance trust. Just like a normal life policy it pays out a certain amount when you die, but unlike a regular policy, it is safe from both bureaucracy and the taxman. This is because the policy is put into a trust, which is like a legal safety deposit box. A trust can only be unlocked by the trustee and it is the job of the trustee to hand over the contents of that trust to the beneficiary or beneficiaries at a time set by the settlor of the trust, which would be you.
So instead of waiting months and months to receive the proceeds of a life settlement, your beneficiaries can get access to the money soon after you pass away.
No one wants to think that their loved ones will not receive 100% of what you intended for them, but without proper preparation this could be the case. So talk to The Mortgage Broker today about taking out a life insurance trust and giving your family some certainty and security for after you're gone.