Writing insurance into trust

loveinaction

I am an only child. My widowed father has some life insurance policies with different insurance companies which need to be written into trust. He wants to use the standard discretionary trust "write into trust" forms supplied by the respective insurance companies because this service is free. 
Could somebody please advise if this format is correct?

Donor/Settlor: Dad's Name
Trustees: Dad's Name and Named Son (My Name)
Beneficiary: Named Son (My Name) and Remoter Issue of the Settlor whenever born

As Donor/Settlor, Dad will automatically be a trustee. He wants me to be the additional trustee. He wants my children (Grandchild X and Grandchild Y) as the reserve trustees, in case I do not survive him/lose capacity etc. He does not want them to be joint trustees with me, only in reserve, to step up in case I'm not around.
Similarly, he wants me to be the first beneficiary and after my death, my children and remoter issue.

Additionally, he would like me, in my capacity as Beneficiary, to be able to "borrow"/take out a private loan from the trust if I choose to, after payment has been made into the trust by the insurance company following his death or even leave it in the trust if I want so that my children and remoter issue can benefit after me.

Is this all possible, using the standard forms provided? None of the insurance companies are able to advise on trust matters and are telling him to seek independent advice.

He has been quoted over £700 for each policy to be written into trust through an independent adviser so we are wondering if it is possible to do this ourselves for free. NB The beneficiary (me) must be allowed to borrow from the trust rather than receive an outright payment. Essentially the Beneficiary and Trustee are the same person (me) so we have been told this is legally possible. We just don't want to pay more than is necessary to get bespoke trust forms if free standard forms will do the same thing.

If not, than is this something that any solicitor can do for my father? What would be a reasonable price per policy trust? 

Thank you.

DullGreyGuy

Why'd you need to be able to get a loan from the trust rather than simply receive the payment out of the trust?

loveinaction

I don't want to put it directly into my estate. I want to leave the trust for my children. IHT planning.

Weighty1

DullGreyGuy said:

Why'd you need to be able to get a loan from the trust rather than simply receive the payment out of the trust?

it can be incredibly tax efficient to do this as it creates a debt on the beneficiaries estate since they "owe" the money to the trust.

Weighty1

loveinaction said:

I don't want to put it directly into my estate. I want to leave the trust for my children. IHT planning.

even the basic trusts which insurers provide would normally allow what you want.  The reason you are getting quotes for £700 is due to them being culpible for the advice being provided, not necessarily the work involved.

Keep_pedalling

Unless you plan to inherit nothing from your father wouldn't it be easier to simply leave the policies as they are and divert some his estate to your children via a deed of variation when the time comes? 

loveinaction

Weighty1 said:

loveinaction said:

I don't want to put it directly into my estate. I want to leave the trust for my children. IHT planning.

even the basic trusts which insurers provide would normally allow what you want.  The reason you are getting quotes for £700 is due to them being culpible for the advice being provided, not necessarily the work involved.

So how would we do this? Is there someone/somewhere we could go to get this done or advise us without this price tag?

dunstonh

loveinaction said:

Weighty1 said:

loveinaction said:

I don't want to put it directly into my estate. I want to leave the trust for my children. IHT planning.

even the basic trusts which insurers provide would normally allow what you want.  The reason you are getting quotes for £700 is due to them being culpible for the advice being provided, not necessarily the work involved.

So how would we do this? Is there someone/somewhere we could go to get this done or advise us without this price tag?

no.  The two places you get advice on these things are solicitors or IFAs/whole of market protection advisers.

They will not do it at no cost as they would carry the liability for the advice.

loveinaction

Thank you. Good to know. So is this price reasonable?