Is it normal to not be able to list a beneficiary in a life policy?

lisyloo

Is is possible you might be able to get help from the adviser/firm who advised you to take out this cover? I routinely help my clients complete their trusts. It's a standard part of the service.

They might have gone direct.

kingstreet

lisyloo wrote: »

They might have gone direct.

True.

You been away? Not seen you around much.

skibster

kingstreet wrote: »

The process is possibly over-complicated because of the wordings involved.

As I said, all you need is the settlor, your husband.

The trustees. All they will do is instruct the life office to pay the money to you (or the other beneficiary/ies) on the death of your husband. These can be friends or relatives, people you trust and yourself, of course.

You need trustees to do their bit regardless of which trust you use.

And the beneficiary, you or someone to replace you, if you die first.

Is is possible you might be able to get help from the adviser/firm who advised you to take out this cover? I routinely help my clients complete their trusts. It's a standard part of the service.

We got it through Aviva online, and haven't found them terribly helpful. They just say we can do a trust if we wish, but I'm not sure they're interested in helping much as they already sold the policy. We may call them again -- I'm going a bit loopy trying to look things up online and call solicitors for quotes on wills I'm not even certain we need (and they always say they will call back and that keeps me tied to the house and phone waiting). I've been looking through so much information that I'm losing track of whether I settled on a trust or a will or both or what, lol.

It's funny as we weren't even looking at the trust in terms of tax avoidance, we just wanted to name a beneficiary and for whatever reason that doesn't seem to be a popular option in this country (if it's possible at all).

Can I buy a policy on my husband as I've read about recently? Would that be the better option, and once it's in place we could cancel the one he bought on himself?

dunstonh

We got it through Aviva online, and haven't found them terribly helpful. They just say we can do a trust if we wish, but I'm not sure they're interested in helping much as they already sold the policy.

They are not allowed to. They cannot give advice, opinion or offer suggestion. If they did, they would be in breach of FSA regulations. So, what you see as unhelpful is not. They just cant offer you the service you want.

It's funny as we weren't even looking at the trust in terms of tax avoidance, we just wanted to name a beneficiary and for whatever reason that doesn't seem to be a popular option in this country (if it's possible at all).

It's not a case of being popular or unpopular. Its a case of UK law requiring it to be done in a certain way. To nominate a beneficiary, you have to place the policy into trust. Otherwise it just gets paid to the surviving policy owner (if joint owner) or into the estate.

Can I buy a policy on my husband as I've read about recently? Would that be the better option, and once it's in place we could cancel the one he bought on himself?

You mean as you as policy owner and him as the life assured? (or joint owner, single life)?

kingstreet

skibster - is there any reason you coudn't take out a joint life policy, then whoever dies, the benefit is paid to the joint policyholder?

In answer to your question, you can take out a policy on a "life of another basis" where you are the owner and get the money if the life assured, your husband, dies.

skibster

dunstonh wrote: »

You mean as you as policy owner and him as the life assured? (or joint owner, single life)?

I meant a policy on that I buy with him as the life assured.

I think for the moment we will do the trust, though I'm unsure if I should list a second trustee as is advised on some websites.

skibster

kingstreet wrote: »

skibster - is there any reason you coudn't take out a joint life policy, then whoever dies, the benefit is paid to the joint policyholder?

In answer to your question, you can take out a policy on a "life of another basis" where you are the owner and get the money if the life assured, your husband, dies.

I think at the time we signed up we decided against a joint policy because my husband isn't affected financially if I pass, but I am if he passes. It's been so long ago we looked into policies (we've had this one for a year) that I don't recall the specifics; does it not cost more to do a joint policy? Maybe that was part of the thinking, too. Also, I have some health issues, so don't know if that would make it more of a hassle to do a joint policy.

If it's all about the same price, then yeah, I guess we should go back and do a joint policy. We still want this particular policy sorted for now.

lisyloo

You been away? Not seen you around much.

Went on hols with 83 year old in-laws, which reminds me. I MUST ask them where their will is.
Don't care where the money goes, just need to be aware of where it is.

kingstreet

skibster wrote: »

I think at the time we signed up we decided against a joint policy because my husband isn't affected financially if I pass, but I am if he passes. It's been so long ago we looked into policies (we've had this one for a year) that I don't recall the specifics; does it not cost more to do a joint policy? Maybe that was part of the thinking, too. Also, I have some health issues, so don't know if that would make it more of a hassle to do a joint policy.

If it's all about the same price, then yeah, I guess we should go back and do a joint policy. We still want this particular policy sorted for now.

On the other question, I'd have at least two trustees, probably three if you can. You can change them later, if you need to.

Joint cover may be a little more expensive, but not much. Health obviously can have an impact but you'd only know how much by making an application and going through the underwriting process.

skibster

lisyloo wrote: »

Went on hols with 83 year old in-laws, which reminds me. I MUST ask them where their will is.
Don't care where the money goes, just need to be aware of where it is.

Good idea, MIL is going to have surgery soon (part of why I feel I should rush with this will or whatever we do as hubby may go out of country to stay with her for an extended time and we won't get our will or trust sorted until he gets back if that's the case). Anyway, I've got to remind him to make sure he knows where her vital documents are just in case. I need to ask my mother the same.