Life Insurance - should it be put into trust ?
Life Insurance - should it be put into trust ?
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Discussion

Zippyworld

Original Poster:

849 posts

214 months

Thursday 11th August 2016
quotequote all
Can anyone put this into basic terms for me please ?
My partner and I, not married but long term with kids, have recently taken out a life insurance policy on her alone.

What we want to do is ensure that the policy pays out to myself and exclude all others, should she die during the term and if we both die atthesame time, say in an accudent coukd this go to our two kids ?

I am notsure if putting the policy in yrust would do this, and if itdoesare there implications ?

Advice appreciated


Jockman

18,414 posts

190 months

Thursday 11th August 2016
quotequote all
You should have been advised at the point of sale. Who did you buy it from?

Zippyworld

Original Poster:

849 posts

214 months

Thursday 11th August 2016
quotequote all
Jockman said:
You should have been advised at the point of sale. Who did you buy it from?
Not really helpful this response..

Ginge R

4,761 posts

249 months

Thursday 11th August 2016
quotequote all
Zippyworld said:
Can anyone put this into basic terms for me please ?
My partner and I, not married but long term with kids, have recently taken out a life insurance policy on her alone.

What we want to do is ensure that the policy pays out to myself and exclude all others, should she die during the term and if we both die atthesame time, say in an accudent coukd this go to our two kids ?

I am notsure if putting the policy in yrust would do this, and if itdoesare there implications ?

Advice appreciated
Default setting, there's a lot to be said for putting cover into trust. Your partner will have peace of mind knowing that post her death, the money won't be bled dry should your head get turned by some gold digger. The company you have the cover with will be able to offer basic assistance and give you some forms. See the Money Advice Service or your local CAB, or just chuck some questions up here.

anonymous-user

84 months

Thursday 11th August 2016
quotequote all
Zippyworld said:
Not really helpful this response..
But it is correct.
Was it an advised sale or did you buy unadvised?

Magic919

14,542 posts

231 months

Thursday 11th August 2016
quotequote all
You can probably achieve some of this using a pair of Wills.

Who are the 'others' you wish to exclude?

walm

10,644 posts

232 months

Thursday 11th August 2016
quotequote all
Ginge R said:
The company you have the cover with will be able to offer basic assistance and give you some forms.
This.
I just did it for one of my policies.
I THINK I understood it - but essentially it puts it in the hands of trusted trustees should the worst happen.
They then decide when the kids get it.

Zippyworld

Original Poster:

849 posts

214 months

Thursday 11th August 2016
quotequote all
My wife absolutely refuses to do a will based on her religious belief and superstition, (it drives me insane). So we decided to take out this cover as she is the main bread winner and I am a stay at home Dad.
The money will provide me enough money to buy the house ( I know that this is complicated) and put the kids through education etc;

I bought through Aviva and they have told me over the phone about a trust but not in detail and iof course they cannot advise...

anonymous-user

84 months

Thursday 11th August 2016
quotequote all
Zippyworld said:
My wife absolutely refuses to do a will based on her religious belief and superstition, (it drives me insane). So we decided to take out this cover as she is the main bread winner and I am a stay at home Dad.
The money will provide me enough money to buy the house ( I know that this is complicated) and put the kids through education etc;

I bought through Aviva and they have told me over the phone about a trust but not in detail and iof course they cannot advise...
Will she do an "expression of wish" for the life insurance or is that no-no as well?

walm

10,644 posts

232 months

Thursday 11th August 2016
quotequote all
Zippyworld said:
My partner and I, not married but long term with kids, have recently taken out a life insurance policy on her alone.
Zippyworld said:
My wife absolutely refuses to do a will based on her religious belief and superstition, (it drives me insane).
That was quick.

Aviva should have a standard form. Ask them to send it to you.

Ginge R

4,761 posts

249 months

Thursday 11th August 2016
quotequote all
Zippyworld said:
My wife absolutely refuses to do a will based on her religious belief and superstition, (it drives me insane). So we decided to take out this cover as she is the main bread winner and I am a stay at home Dad.
The money will provide me enough money to buy the house ( I know that this is complicated) and put the kids through education etc;

I bought through Aviva and they have told me over the phone about a trust but not in detail and iof course they cannot advise...
I hate to complicate things - you've obviously tried to do the right thing. What if she is severely injured, loses her job, is long term very sick?

Zippyworld

Original Poster:

849 posts

214 months

Thursday 11th August 2016
quotequote all
Expression of wish is no no too !

anonymous-user

84 months

Thursday 11th August 2016
quotequote all
Zippyworld said:
Expression of wish is no no too !
In which case I think you are fked.

Personally I would just fill it in and sign upon her behalf, but that's just me.

Sounds complicated!!

Zippyworld

Original Poster:

849 posts

214 months

Thursday 11th August 2016
quotequote all
Should anything happen to my other half and as we are not married all the estate would go to the kids, 4 and 9 years old. As there is no will or Expression of wish we decided that the life insurance policy would be the next best thing.

We simply want to ensure that I am the sole recipient of the money.

Would this involve a trustee or can I be the trustee and receiver of the proceeds ?

anonymous-user

84 months

Thursday 11th August 2016
quotequote all
If she won't sign an expression of wish I can't see how it can be done.

Can I ask what religion she is?

I really think you may need a sit down with a professional who may well be able to set things up in a way that complies with certain religious beliefs - a similar concept is used in sharia compliant finance.

Zippyworld

Original Poster:

849 posts

214 months

Thursday 11th August 2016
quotequote all
The more I look at it its more of a supestition, we have seen two solicitors who have ultimately said they cannit help us if she is not willing to do a will or EOfT.

Its been really frustrating on my part....

Ginge R

4,761 posts

249 months

Thursday 11th August 2016
quotequote all
Zippyworld said:
Should anything happen to my other half and as we are not married all the estate would go to the kids, 4 and 9 years old. As there is no will or Expression of wish we decided that the life insurance policy would be the next best thing.

We simply want to ensure that I am the sole recipient of the money.

Would this involve a trustee or can I be the trustee and receiver of the proceeds ?
Yes. A beneficiary can also be a trustee or executor. Always best to have a couple of others, too, though.

Zippyworld

Original Poster:

849 posts

214 months

Thursday 11th August 2016
quotequote all
Ginge R said:
Zippyworld said:
Should anything happen to my other half and as we are not married all the estate would go to the kids, 4 and 9 years old. As there is no will or Expression of wish we decided that the life insurance policy would be the next best thing.

We simply want to ensure that I am the sole recipient of the money.

Would this involve a trustee or can I be the trustee and receiver of the proceeds ?
Yes. A beneficiary can also be a trustee or executor. Always best to have a couple of others, too, though.
If I am the sole recipient why would I need other trustees ?

anonymous-user

84 months

Thursday 11th August 2016
quotequote all
Zippyworld said:
If I am the sole recipient why would I need other trustees ?
If she won't do an expression of wish then I think you are screwed.

Is it religion or superstition that is stopping her?

walm

10,644 posts

232 months

Thursday 11th August 2016
quotequote all
Zippyworld said:
We simply want to ensure that I am the sole recipient of the money.
So you want a will but called something else?
She might see through that ploy!

Zurich Absolute Trust Guide said:
What is the trust for?
"To enable you, as the donor, to make an absolute gift to the beneficiaries, making them sure to inherit."