The Importance of having a Trust
The Importance of having a Trust!
At Financial Foresight we understand that not every single person who walks through our doors are the same, that everyone has their own unique financial situations of which they must deal with.
You should think about putting your old and new life insurance in Trust – it is not a bad idea! in fact we would encourage you to do so due to the range of benefits this will have in the event of your untimely death. We have outline three key benefits below;
1. Right Money
You can use a trust to give some or all the benefits on your Life Insurance, Investment Plan to your loved ones. This means that the benefits would not be part of your estate if you die and would not be subject to inheritance tax.
Inheritance tax is currently payable at 40% on any part of an estate valued over the nil rate band (this is frozen at £325,000 until 2018–19) if you don’t put your plan in trust, you are running the risk of any money your plan may pay out is added to your estate.
2. Right Hands
Trusts can be very flexible, which allows you to have total control over who will benefit from your cover and who will be responsible for making sure your wishes are met whenever you are unable to make decisions on your estate.
At Financial Foresight we are with you at all steps of setting up your trust, we will explain the importance of selecting the right trustees and all the fine print many insurance companies include. Trustee are the people who will administrate your claim when the money is paid out– so it is vital to choose someone who you can trust and who will act fully on your behalf to met your full wishes.
3. Right Time
If you put your plan in trust today it will allow for any claim that may be made to be paid more quickly, if you die without pitting your plan in trust your family representatives may have to obtain a Grant of Representation before they can deal with your plan, which could take several months to complete, putting a hold on the money being released to your family and loved ones who may be relying on this to pay funeral costs or to clear the mortgage to avoid financial hardship in the early months.
At Financial Foresight we have realised the importance of putting your plans in trust and would advise anyone who is interested in doing this or even looking for some additional information about trusts to give us a call on 028 9332 2822 – as one of our expert financial advisers would be more than happy to help.