Need to put Life insurance in trust

[Ken Figenus]

Have had some forms from insurer as putting our joint life insurance in trust seems a good move. It was never designed to be taxed as a nice little earner - only to help a lower earning partner survive in a sad bad situation!

There's a few choices to be made and need to choose between a Discretionary Gift Trust and Survivor Trust. Looks like the former can be assigned to anyone as beneficiary and will always avoid IHT issues and the latter may have IHT issues if the missus and I both pop our clogs at the same time.

Has anyone done this and have any kind advice/pointers? Just want to minimise IHT and ensure surviving partner or our kids benefit.

Thanks

[Ken Figenus]

LOl - they say not half enough people do this! Only 6% apparently! Any pointers most welcome

[randlemarcus]

Surely IHT issues will only ever occur if you cease to be, and then the missus falls off her perch separately? The money doesn't exist until you die, so cannot form part of your estate, only hers.

[dalenorth]

It would be the survivor trust. We specialise in life cover and trusts so feel free to pm me if you need any help?

[Ken Figenus]

randlemarcus said:

Surely IHT issues will only ever occur if you cease to be, and then the missus falls off her perch separately? The money doesn't exist until you die, so cannot form part of your estate, only hers.

As I understand it mate it avoids putting the insurance money in your estate. Now such transfers to spouses are exempt but further down the line this amount will have added to the estate. So, unless she parties VERY hard indeed with the sum it will add to any liability for the kids... So putting it in trust gives more choice and control. Not 100% on it so may PM Dale!