Placing your policy in trust is important if, on your death, you wish the proceeds of your life insurance to be paid to your dependants in a straightforward manner.
Trusts are very easy to arrange, and LifeSearch does not charge for setting them up on behalf of LifeSearch customers.
For the vast majority of situations, the most sensible thing is to put your life insurance policy in trust. And in most instances, this should be a Flexible Trust.
A Flexible Trust allows you and others to control what happens to the money after your death. At the outset, you decide who is to benefit and in what proportion.
The great advantage of this? The money is passed directly to your beneficiaries, without reference to your will or the taxman. It speeds up the process of getting the money to your beneficiaries by, on average, six months. Absolutely vital!
A Trust is also key if you wish to avoid falling into the Inheritance Tax trap.