Life Assurance and Pensions in Trust

Question 1

Adv. of writing Life Policy in Trust

Answer 1

• Paid quickly to trustees - no probate
• Outside Estate
• Paid to intended beneficiaries
• Premium payments can be covered by annual exemption or gifts from income exemption

Question 2

Will POAT/GWR apply to life policies in trust?

Answer 2

• No
  unless a business trust

Question 3

What is a business Trust

Answer 3

• A trust with a life policy for the other shareholders to buy the deceased’s share in the business from the family
• Usually Discretionary
• Usually a cross option agreement in place
• Can include relevant life policy (paid by business)