It's simple, always have your life insurance policy "written in trust". It may seem technical, but it's easy to understand and it's so easy to organize.
"Written in Trust" guarantees that in the event of a claim, the police will directly pay the beneficiaries you have appointed to the police during your first subscription. If you don't, the police will be paid to your legal succession and that inevitably means that money remains in the hands of your lawyer for a while.
Yes, this implies legal deadlines and, of course, your notary takes a little part!
Then, if the value of your taxable succession exceeds £ 275,000, and remember that your house can easily represent the share of the lion of the limit of £ 275,000 without too much difficulty, your succession will have to pay inheritance rights. This represents 40% of the taxable value of the succession beyond £ 275,000. Thus, if your succession has to pay inheritance tax and the product of your life insurance policy goes to your succession, the taxman is getting their hands on 40% of your life insurance policy!
But it is so easy to avoid all these problems.
Simply get your police "written in a trust". Then, the life insurance company immediately pays, directly and totally in tax franchise to the people you have appointed to your police. All you have to do is say to the online brokerage company organizing your police that you want your police to be "written in trust" and they will automatically settle it for you.
This advice remains valid even if the policy is designed to repay your mortgage loan. Instead of your succession uses payment of insurance to reimburse your mortgage loan, the police can be written by trust and paid to your partner, who can then use this money to reimburse the mortgage loan. Earnings? Well, if your taxable heritage exceeds the IHT threshold, the mortgage is actually reimbursed in tax franchise.
The additional good news is that all the brokers we met will make your police "written in a trust" as a free service. It is therefore a win-win situation and there are not many today!
