We spend our lives looking after and planning for our loved ones and even after our death the planning does not stop. Assigning your Life Assurance into a Trust or ‘written in trust’, gives you a voice beyond the grave.


Assigning your Life Assurance Policy into Trust assures all the proceeds will be paid quickly, free of Inheritance Tax, and without the need for probate as it will not form part of your estate. It further prevents proceeds being at risk from remarriage or divorce, creditor claims, and long-term care fees.


You can choose your beneficiaries and appoint Trustees of your choice, with the full assurance that your beneficiaries will receive the Trust fund monies before probate, bypassing the lengthy and expensive probate process, and avoiding the large Inheritance bill that is part of the Inheritance Tax liability on death.


Life can get busy and priorities can be downgraded and that is why at R2U we understand and value the importance of assigning your Life Assurance into Trust.

Your application can be submitted online from the comfort of your own home.

Assigning your Life Assurance into Trust

  • Life Assurance in Trust is whereby you would assign your Trust fund money into either an Absolute Trust or a Discretionary Trust. Both require a Settlor, beneficiaries and Trustees.


    It is very important to note that once you have written your Life Assurance into Trust, it is no longer in your control and it has now been handed over to the Trustees. This is now deemed as an ‘irrevocable act’ and cannot be changed. It is important to consider what type of Trust you would like to assign your Life Assurance to.


    If you specify that the Trust Fund are to pass ‘absolutely to specific beneficiaries such as a spouse, partner, children, or grandchildren etc), this is deemed as an absolute Trust.


    This type of trust could potentially be at risk of one or more possible threats such as:


    • Should any of your beneficiaries marry, their spouses will be entitled to their share.
    • Should any beneficiaries divorce, then the monies could potential be included in the proceedings.
    • Should any of your beneficiaries have or in the process of being declared bankrupt or insolvent, their inheritance will be paid to pay off these debts.
    • Should any beneficiaries end up in a care home, then the monies would be used to pay for the care home fees.
    • By giving any money absolutely to any beneficiaries this may potential increase their estate and increase their Inheritance Tax liability.
    • To provide the protection from the threats, rather than directing the fund absolutely to the beneficiaries, our advice would be to direct the Trust Fund to a Discretionary Trust