Trusts and protection
Trusts and your protection cover
Writing a protection policy in trust may help the payout reach the right people, more directly. Here is how it works in plain English.
Talk to TonyAt a glance
- A trust can help direct a payout to the people you choose
- May avoid delays caused by probate
- Can help with inheritance tax planning, depending on circumstances
What does writing a policy in trust mean?
When a life insurance or protection policy is written in trust, the payout is managed by trustees and paid to your chosen beneficiaries, rather than becoming part of your estate. Many insurers offer simple trust forms at no extra charge.
Who it may suit
Everyone's situation is different, but these are some of the people who often look at this kind of cover.
How it works with Tony
Good to know
- Tony is not a tax or legal adviser. For tax or legal questions about trusts, please speak to a suitably qualified professional.
- A trust generally needs to be set up when the policy starts, and changing it later can be more complicated.
- You need to choose trustees you trust to act as you intended.
- The right structure depends on your family and financial circumstances.
Meet your adviser
Hi, I'm Tony Flynn
I'm a mortgage and protection adviser based in Carluke, helping people across Lanarkshire and Scotland.
I've spent 15+ years in finance and have been named Mortgage Professional of the Year at the Prestige Awards Scotland five years in a row. I'll explain your options in plain English so you know exactly where you stand.
Protection Trusts questions
Why put a policy in trust?
It may help a payout reach your chosen beneficiaries directly, and in some cases it may avoid probate delays and help with inheritance tax planning.
Does it cost extra?
Many insurers provide standard trust forms free of charge, but this depends on the provider.
Who are trustees?
They are the people who manage the trust and make sure the payout goes to your chosen beneficiaries. Often these are family members or trusted friends.
Can I change the trust later?
Sometimes, but it can be more complicated. It is best to think carefully when you set it up.
Is this tax or legal advice?
No. Tony is not a tax or legal adviser. For those questions, please speak to a suitably qualified professional.
Ready to talk it through?
A quick chat with Tony is a good first step. No jargon, no pressure.
Talk to Tony