Standard Life Insurance finds trusts are profitable

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Standard Life Insurance finds trusts are profitable

Wed 9th Nov 2005

Life insurance written under trust has been found to pay out a lot faster than other policies, according to Standard Life Insurance.

The reason for this is that trusts do not need customers to wait for the grant of probate or confirmation – these can take up to six months to arrive.

Julie Hutcison of Standard Life, said: "People should ask themselves why they would not put their policies in trust rather than questioning the need to do so.

"Trusts and life assurance policies should go hand in hand."

Furthermore, trusts can give people a chance to avoid paying inheritance tax.

Law requires inheritance tax to be paid on a deceased's estate worth over £275,000.

However, by placing the estate money in a trust this can be avoided as the policy would be owned by the trust rather than the deceased.

"Trusts are a most useful way of ensuring speedy payment of claims so loved ones can get on with their lives without worrying about meeting ongoing financial commitments," Ms Hutchinson concluded.