Standard Life: Trusts best for life insurance

10 November 2005
Life insurance policies written under trusts are paid out months quicker than other policies, says Standard Life.

A survey by the insurance provider found that life insurance policies written under trusts were paid out much quicker in the event of death and could also avoid inheritance tax.

Standard Life found that other policies could take as long as six months to be paid out

"People should ask themselves why they would not put their policies in trust rather than questioning the need to do so. Trusts and life assurance policies should go hand in hand," said Julie Hutchison, estate planning specialist at Standard Life.

However, the insurance provider found that, despite obvious benefits, only one in ten life assurance policies are written under trusts.

Trusts can avoid inheritance tax since they are owned by the trust, not the deceased.

"Trusts are a most useful way of ensuring speedy payment of claims so loved ones can get on with their lives without worrying about meeting ongoing financial commitments," Ms Hutchinson said.

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