Trusts are used with life insurance to ensure that the money goes to the right person at the right time. Without a trust the policy proceeds will be paid to the estate of the deceased, however, this could create additional inheritance tax liabilities and more importantly prevent the money from being paid out quickly especially if there is no Will in place. Without a Will the estate of the deceased will be subject to intestacy and may require any tax liability to be paid before the estate can be released.

By placing the policy in trust the policyholder is essentially giving the proceeds to trust on death which is then outside of the deceased persons estate and under the guidance of the trustees ensures that the policy proceeds are paid immediately to the nominated beneficiaries.

At LetsGoCover, we can refer you to Zen Generational Wealth where they will offer our clients a free trust service. The experts at Zen will discuss any estate planning needs the policyholder may have and if appropriate will establish the correct trust.