Hot Topic: Trusts & protection

When taking out life assurance make sure that you have clearly understood who you wish to benefit. Take into account how it will be paid out, any Inheritance Tax implications and, indeed, the efficiency and speed in which the payment is made on death. By using trusts (which do not necessarily need to be complex or expensive) you can ensure that not only do the funds bypass your spouse’s estate, but also are paid without the need for probate to be granted. There are a number of trusts often available from the life companies for free. However, if your estate is over £325,000 in the tax year (09/10), we would generally recommend that you involve a solicitor to consider the wider implications of the payment of that life assurance, especially where children are involved. Many tens of thousands of pounds could be saved by using the correct trust, for which the cost of implementation would be minimal.