Life Insurance - to put in Trust

cici71

Hi
Just a bit of advice needed before i send this off. My life insurance with L+G covers my mortgage and extra to pay my debts. I understand that if i didn't put this amount in 'Trust', it would go to my estate making that plus the value of my house go over the threshold for inheritance tax. I want to put my life insurance in trust so that it can go to my husband so he can use the money to pay off mortgage/debts etc. My Will (which i've just done) obviously has 2 executors and i've named beneficiaries. This trust however, i want just plain and simple. Can i name my husband as trustee but he's also sole beneficiary? Thanks.

dunstonh

I understand that if i didn't put this amount in 'Trust', it would go to my estate making that plus the value of my house go over the threshold for inheritance tax.

If you are the sole owner of the life policy then yes. If it is joint owner then it goes to the other policy owner outside of the estate.

I want to put my life insurance in trust so that it can go to my husband so he can use the money to pay off mortgage/debts etc.

In the case of debts, you usually dont need to do that as the sum assured paid out will offset the debts.

This trust however, i want just plain and simple. Can i name my husband as trustee but he's also sole beneficiary?

You can. Is there any reason why the life assurance is just in your name?

cici71

Hi
I owned my property before i met my husband and have continued as sole owner on the mortgage. The life insurance i have is a level term insurance as my mortgage is an interest only. This is why the insurance is a single policy and not joint. The amount insured was exactly the amount of the mortgage remaining. I understand that my debts do not die with me therefore i pay pennies extra as i increased the amount to cover credit card debts etc. If i died prematurely, i didn't want my husband/children selling property just to settle debts etc. This way, i'm hoping that if i die - house and debts are paid for.

HappyHarry

Just to note - the main insurance providers all have trust forms that they can send to you for completion. The forms may not be available on their website, but a phone call should be sufficient to get them sent out.

cici71

Yes, thank you HappyHarry. I've used the Legal and General one on their site.