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Putting Life Assurance Into Trust

My wife and I are about to have our first child in May. In preparation I want both of us to take out life assurance policies in case anything happens to either one or both of us, so that we would not be struggling financially.

As standard, all life assurance policies have the option to be written into Trust. Now if the policy was just for my wife's benefit, then surely this would not matter since there is no Inheritence Tax (IHT) between married partners. However I am guessing that the reason for this is if it is passed, either wholely or partly, to person or persons who I am not married to, then it would be liable for IHT. Is this correct?

Basically I want the following.

- If I die, then it goes totally to my wife.

- If both my wife and I die, then the money should be held in the Trust until our child/children reach the age of 18 (or whatever is usual).

- If both my wife and I die and we have no kids or no kids survive, then the money should go to my brother.

Can the above be achieved with a Trust and how easy would it be to do without a solicitor?

Thanks in advance for any help.

Jonathan

Reply to
nielsonj1976
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Yes. Depends on your ability.

Reply to
Peter Saxton

The life company's trust form will more than likely achieve this. Discuss it with the life company.

Rob Graham

Reply to
Rob graham

[snip]

a) insurance companies generally have their own trust forms that you can complete b) IANAL, but I suspect that if you survive 7 years after you create the trust, the transfer of the policy into the trust will be exempt from IHT under the PET rules.

Reply to
Allan Gould

IANAL either, but afaik it's exempt anyway (normally), since only the input (premiums) would be considered, and these are likely to be

Reply to
GSV Three Minds in a Can

If the premiums are regular and are small in nature and affordable out of income without any detriment of their standard of living then the 7 year rule wont apply.

Reply to
John Boyle

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