Life Insurance - Written in a Trust

coachman12

jacsll55 wrote: »

Is it good to have a Trust for life cover on a mortgage?

Yes, I believe it is

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in certain circumstances. For example, my wife and I both have policies which we have placed in Trust for each other. In effect a spouse is handing over the ownership of a life policy which he/she has taken out on their own lives to their partner. This arrangement will stop the often convoluted need , upon death, of my wife have to make tortuous representations to the insurance company just in order for it to be put into my estate and then making her having to receive that estate via my Will ( which gives her my entire Estate). She will already "own" the policy herself without all the hassle mentioned above. It seems good sense to me and to our financial and insurance advisers. Hope a personal view of my own situation is of help, rather than trying to consider more abstract and general considerations.

SonOf

Yes, I believe it is

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in certain circumstances. For example, my wife and I both have policies which we have placed in Trust for each other. In effect a spouse is handing over the ownership of a life policy which he/she has taken out on their own lives to their partner.

That could equally have been achieved set up as life of another. i.e. person 1 is life assured and person 2 is policy owner.

This arrangement will stop the often convoluted need , upon death, of my wife have to make tortuous representations to the insurance company just in order for it to be put into my estate and then making her having to receive that estate via my Will ( which gives her my entire Estate)

And why did you do a joint life, joint owner policy instead? (as it would have avoided that and would have been cheaper). Note I am not saying what you have done is wrong or whatever. It would just help the context as to when it is suitable and when it is not needed.

coachman12

SonOf wrote: »

That could equally have been achieved set up as life of another. i.e. person 1 is life assured and person 2 is policy owner.



And why did you do a joint life, joint owner policy instead? (as it would have avoided that and would have been cheaper). Note I am not saying what you have done is wrong or whatever. It would just help the context as to when it is suitable and when it is not needed.

TY. By way of reply I would argue that joint policies presuppose that both partners need the same level of cover for the same length of time. Those criteria do not apply to my wife and me, partly due to an above-average difference in age and partly for other personal but pertinent reasons.

SonOf

By way of reply I would argue that joint policies presuppose that both partners need the same level of cover for the same length of time.

For covering a mortgage, that is nearly always the case (this thread is about mortgage cover after all).

For other provision, such as income replacement, then you it frequently happens that the needs differ and individual plans can help. Or a joint plan for the lesser and sole for the remainder (things can be done in different ways).