Life policies in trust: Why new govt rules are adding complexity

clock • 6 min read

The obscure new beneficiary registration trap for life policy trusts adds yet another layer of complexity, writes Ruth Gilbert

  The old lack of trusts chestnut In theory, trusts are a great solution to ensuring life cover claims aren't held up in probate on single life cases. For a few, they can also avoid the taxman taking a slice of inheritance tax off the proceeds. But in practice, it's just too hard a sell to get them done. We already know customers find trusts too confusing. The same can be said for insurer administration and marketing teams and not a few financial advisers. So it's not surprising that the uptake of life policy trusts remains stubbornly low and appointment of trustees is even ...

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