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Insurance & Trust for children

We have recently taken out a level term assurance policy and have been advised by the insurance company to put these policies into a trust for our two children. Has anyone else done this or anyone had experience of this?

Comments

  • dunstonh
    dunstonh Posts: 121,282 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Has anyone else done this

    yes
    or anyone had experience of this?

    yes

    However, as there are different trusts to cover different needs and the way you write the policy or what need it is for can impact on whether a trust is needed or not
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • cinzano
    cinzano Posts: 165 Forumite
    We have been advised that should both my husband & myself die, having the policies in Trust would save the children any legal wrangle and inheritance tax, but having little knowledge of Trusts I am unsure as to any downsides to this.
  • Wutang_2
    Wutang_2 Posts: 2,513 Forumite
    cinzano wrote: »
    We have been advised that should both my husband & myself die, having the policies in Trust would save the children any legal wrangle and inheritance tax, but having little knowledge of Trusts I am unsure as to any downsides to this.

    The downside would be that the money wouldn't be left to anyone else.

    Its good advice!
    Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam
  • cinzano
    cinzano Posts: 165 Forumite
    Thank you for taking the time to answer - I will complete the forms over the week - end.
  • cinzano wrote: »
    Thank you for taking the time to answer - I will complete the forms over the week - end.

    Whoaaa there...

    There are many different types of trust, I understand your insurer recommended this... but it would be a good idea to get some independent advice on this... it's an important bit of planning which hopefully will never be used - but should the worst happen you won't be there to change things so make sure you get it right from the start.
    I am a Financial Adviser specialising in Mortgages, Protection, Health and Medical Insurance. I also write wills. All information posted on this site is for discussion only, and should not be taken as advice.
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