Recent figures show that less than 10% of life policies are put into trust, and this is most likely because either:
- Advisers don’t have enough time or;
- Advisers don’t understand it properly
Which category do you fit into?
We all know the outcome of not placing polices in trust, but do your clients? Probate delays and intestacy issues, inheritance tax! Did you know over 80% of probate cases take at least 2 months, but over 10% take more than a year?
How would your clients’ family cope during this time? They might not have access to any other money, so the with the mounting bills, living costs, possibly extra childcare costs and a funeral to deal, this puts additional strain on loved ones at a very emotional time when they may not be thinking logically. All this extra stress and worry can easily be avoided by placing protection polices in trust.
There are even plans, such as Guardian, where you can set up Pay-out Planner when you’re applying for your clients’ life cover. Your client can nominate up to nine beneficiaries and, should they die during the policy term, Guardian pay the proceeds to those beneficiaries with no probate delay, regardless of whether they left a will or not. A few other companies now have an online process which takes minutes to complete.
There are always webinars from providers for more details call the BDM at your preferred protection provider and ask if there are any webinars coming up.
What is a Trust?
L&G have a section on their adviser site that will give you all the information you need to know about personal Trusts, without the jargon. Click here to find out more.
