Source of Premiums
Assuming you wish to place your life insurance in trust, it is very important that you, as the settlor, pay the premiums from your own bank account and not from a joint bank account.
If you do not have a bank account solely in your name, we recommend that you contact your bank to open one before putting life insurance into a trust.
Under no circumstances, unless the policy is a joint-life second death policy, should you pay your premiums from a joint bank account, or from any bank account other than one in your sole name. For example, if you're married, your life insurance policy is in trust, and (assuming your spouse is a beneficiary) you pay the premiums from you and your spouse's joint bank account; the proceeds of your policy in the event of your death will be included in your estate for Inheritance Tax. |
