Protecting assets using trusts

If you have life assurance contracts payable on your death, you need to consider establishing a trust to mitigate potential inheritance tax charges on the sums paid out and to protect the funds for successive generations.


This works by creating a lifetime trust and assigning the rights to the policy to the trust rather than the benefits becoming payable to your estate. 

The trust can be discretionary, with trustees able to use their discretion to use the fund, so that all family members are potentially able to benefit.

This provides ultimate flexibility for the trustees and your family to utilise the funds in the most tax efficient and secure way possible.

The types of life assurance policy your estate could be entitled to benefit from include:

  • Death-in-service benefit

  • Whole of life policy

  • Term assurance policy (often linked to a mortgage)

Contact us using the form below if you'd like to discuss these trusts with one of our experts.