Buying Life Insurance? One tip to save you ?thousands!Posted by Nick Niesen on October 29th, 2010 It?s simple, always have your Life Insurance policy ?Written in Trust?. This may sound technical but it is easy to understand and it?s so easy to organise. Yes, that implies legal delays and, of course, your solicitor takes a small cut! Simply get your policy ?Written in Trust?. Then the life insurance company pays out immediately, directly, and totally tax-free, to the persons you have named on your policy. All you have to do is tell the online brokerage organising your policy that you want your policy ?Written in Trust? and they will automatically sort it out for you. This advice remains sound even if the policy is designed to pay off your mortgage. Rather than your estate using the insurance payout to pay off your mortgage, the policy can be written in trust and paid to your partner and then he or she can use that money to pay of the mortgage. The benefit? Well if your taxable estate exceeds the IHT threshold the mortgage is effectively paid off tax-free. The extra good news is that all the brokers we?ve met will arrange for your policy to be ?Written in Trust? as a free of charge service. So it?s a win win situation and there aren?t many of those around these days ! Like it? Share it!More by this author |