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Life insurance help trusts
Paul_1977
Posts: 992 Forumite
I would like to put my life insurance policy into a trust so that it pays out to a close family member only. I have no children and I am not married or in any relationship.
I am with Legal and General, and have decided that the absolute trust would be best.
However, does anyone know if its possible to list this family member (The beneficiarie) as a The trustee as well?
I would be a trustee by default, but I only really want to involve myself and this family member only.
If anyone could offer advice it would be a great help.
I am with Legal and General, and have decided that the absolute trust would be best.
However, does anyone know if its possible to list this family member (The beneficiarie) as a The trustee as well?
I would be a trustee by default, but I only really want to involve myself and this family member only.
If anyone could offer advice it would be a great help.
0
Comments
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Yes a beneficiary can be a trustee as well.
However, in this case you should have more trustees. In the event you wish to change the beneficiary or a trustee at a later date, having only two of you could make it problematic.
You may end up having to cancel the policy if you can't alter the trust.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
kingstreet wrote: »Yes a beneficiary can be a trustee as well.
However, in this case you should have more trustees. In the event you wish to change the beneficiary or a trustee at a later date, having only two of you could make it problematic.
You may end up having to cancel the policy if you can't alter the trust.
The OP won't be able to change the beneficiary if they use an absolute trust.
OP, in most instances policyholders use a flexible/discretionary trust since it allows more flexibility in terms of changing beneficiaries if your circumstances ever change plus it provides more protection to the beneficiary in the event of divorce or bankruptcy. Not saying that an absolute trust is not right for your circumstances just that you really should take advice on it if you aren't 100% certain you're using the right trust.0 -
Sorry, missed the absolute.
Was too busy with the number and constitution of trustees issue.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
I thought you must have. I tried typing something out which inferred you'd just overlooked it but it just sounded patronising!
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Thanks for your help, I will use a flexible one as suggested.0
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