Financial Trusts

When we arrange protection for our clients, by setting up the plan in trust we can help make sure that the pay-out from the plan ends up in the right hands, at the right time – without up to £4 in every £10 going to the taxman.

Please note:  Trust and Inheritance Tax planning are not regulated by the Financial Conduct Authority.

Tax treatment varies according to individual circumstances and is subject to change.

Quicker payment of claims

If you put a plan in trust, the insurer will be able to pay your claim more quickly. If someone dies and their plan is not in trust, their representatives will have to obtain a Grant of Representation before they can deal with the plan. This can take several months. Putting a plan in trust can avoid this delay.

The plan proceeds may be free of inheritance tax

Inheritance tax is payable at 40% on any part of an estate valued over £325,000. But you can use a trust to gift some or all of the benefits on the plan to other people. The gifted benefits would no longer be part of your estate if you die, which means those benefits would not be subject to inheritance tax.-More info can be found here.

The Settlor

The settlor is the person who sets up the trust. They will appoint trustees to administer the trust and decide who the beneficiaries will be. They will also provide the property that will be held by the trust.

The Trustees

The trustees will manage the trust fund for the beneficiaries. This includes making any claim under the protection plan and, if appropriate, investing any money paid out from that claim.

The Beneficiaries

The beneficiaries will receive the trust fund in line with the settlor’s wishes, often children will be nominated in family protection cases.


Get in touch

To chat to one of our experience advisers on how they can help you achieve your financial goals, contact us on 01928 73 55 10 or by filling out our online enquiry form above and we’ll be in touch shortly.