It is almost always best to write life insurance policies into trust, but the practice is not always popular among clients. Rachel Dalton finds out why
Life insurance policies provide a lifeline to families suffering the loss of a member. It makes sense that bereaved families would want to access the money provided when a life insurance policy is triggered as quickly as possible, and a trust can help to do that. However, setting up a trust is not always straightforward and there is no one-size-fits-all solution. Why trusts? Usually when a policy holder dies, their life insurance policy passes into their estate. It is then subject to all of the complications of probate. Alan Lakey, director at Highclere Financial, explains: “G...
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