What is a Life Insurance Trust?
A life insurance trust is a recognised means of making sure, if you die, that the payout from your life insurance policy is paid out:
To the person or people you want to look after
Without having to wait for Probate to be granted
Most importantly, with no liability to Inheritance Tax
Life insurance trust legislation changed on 22 March 2006. Since that date, for nearly all family circumstances, the most suitable form of trust will normally be a discretionary trust.
(Before March 2006, life insurance would usually have been placed in an interest in possession trust.)
