potential beneficiary overseas of life policy

fredy4

Can anyone say whether it is possible to take out life insurance with an ordinary Uk life insurer (level or decreasing) and write in trust a policy for a beneficiary who is resident abroad and non-uk nationality? The settlor would be UK resident and national.

HappyHarry

fredy4 wrote: »

Can anyone say whether it is possible to take out life insurance with an ordinary Uk life insurer (level or decreasing) and write in trust a policy for a beneficiary who is resident abroad and non-uk nationality? The settlor would be UK resident and national.

Yes you can.

The trust effectively puts the benefit of the plan outside of the settlers estate according to UK regulations.

The beneficiary will then be entitled to those funds, but may have some exposure to tax, depending on the tax laws in the country of residence.

HappyHarry

fredy4 wrote: »

Thanks for your reply Happy Harry. Assuming the Settlor used a Solicitor as Trustee would the normal provision for fees, taxes etc to be taken from the benefit paid be sufficient. How would one word this? Also It is assumed addresses and contact details of the overseas resident would have to be provided. would this be on the trust document or in a 'letter of wishes' ?

Current address of the beneficiary would go on the trust form.

You would probably want to speak to the solicitor trustee beforehand to agree how their fees should be paid.