Life policies in trust: Why new govt rules are adding complexity

clock • 6 min read

The obscure new beneficiary registration trap for life policy trusts adds yet another layer of complexity, writes Ruth Gilbert

  The old lack of trusts chestnut In theory, trusts are a great solution to ensuring life cover claims aren't held up in probate on single life cases. For a few, they can also avoid the taxman taking a slice of inheritance tax off the proceeds. But in practice, it's just too hard a sell to get them done. We already know customers find trusts too confusing. The same can be said for insurer administration and marketing teams and not a few financial advisers. So it's not surprising that the uptake of life policy trusts remains stubbornly low and appointment of trustees is even ...

To continue reading this article...

Join COVER for free

  • Unlimited access to real-time news, key trend analysis and industry insights.
  • Stay on top of the latest developments around health and wellbeing, diversity and inclusion and the cost of living crisis.
  • Receive breaking news stories straight to your inbox in the daily newsletter.
  • Members only access to monthly programme 'The COVER Review'
  • Be the first to hear about our CPD accredited events and awards programmes.

Join now

 

Already a Cover member?

Login

More on Individual Protection

Little change in economic inactivity: ONS

Little change in economic inactivity: ONS

Number of vacancies decreasing

Jaskeet Briah
clock 17 December 2024 • 3 min read
Beagle Street adds protection offering to OneFamily platform

Beagle Street adds protection offering to OneFamily platform

Replatformed by iPipeline

Jaskeet Briah
clock 12 December 2024 • 1 min read
Young adults turning to social media for health information

Young adults turning to social media for health information

Half of adults have self-diagnosed in the last year

Jaskeet Briah
clock 11 December 2024 • 3 min read