Protecting assets using trusts

If you have life assurance contracts payable on your death, you need to consider establishing a trust to mitigate potential inheritance tax charges on the sums paid out and to protect the funds for successive generations.

 

This works by creating a lifetime trust and assigning the rights to the policy to the trust rather than the benefits becoming payable to your estate. 

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The trust can be discretionary, with trustees able to use their discretion to use the fund, so that all family members are potentially able to benefit.

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This provides ultimate flexibility for the trustees and your family to utilise the funds in the most tax efficient and secure way possible.

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The types of life assurance policy your estate could be entitled to benefit from include:

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• Death-in-service benefit

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• Whole of life policy

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• Term assurance policy (often linked to a mortgage)

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Contact us using the form below if you'd like to discuss these trusts with one of our experts.