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kloofnek | 13:42 Thu 22nd Mar 2012 | Insurance
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I have a whole life cover insurance and don`t know whether to put it in trust or not.I want to make it the easiest way possible for my family to claim the money when I die.
From what I can gather ,it is to do with inheritance tax.
Now I will not have any estate to leave ,am a pensioner and by the time,hopefully,I die ,I will have depleted any savings I have.
So it will just be my insurance for them.

I have rang my insurance company and they are sending me the necessary forms but she was saying something about the executor etc...all this is beyond me.

So can some kind person out there enlighten me about this in simple form.
Thank you


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"From what I can gather , it is to do with inheritance tax. "

From what you say there will be no inheritance tax due on your estate anyway
Question Author
That`s what I thought,so the question is do I do this trust thing or not,,as I have said want to make things as easy as possible for my family.Will it make the insurance payout quicker by doing it?
There must be someone out there who`s knowledgeable on this.
I don't think they will pay out quicker because its a trust. Life insurance policies are pretty simple, the executor sends off a death certificate and assuming there are no caveats in the policy, then the insurance company pay out.
Question Author
the executor????
Sorry kloofneck- what is your query about the executor. The easiest way to allow your family to sort out the affairs of an estate is to name executors or an executor in the will
Question Author
So just name someone to sort it all out when I die?.I am thinking about getting my daughter to take charge.Would that be ok/
Question Author
I have now read that you only have an executor if one had made a will.which I have not.Can I still ask my daughter to attend to things?
why not make a will? unless you want your husband to get everything?
You need to make a will, kloofnek - otherwise everything goes into probate until it's sorted out, and that certainly delays any payout on anything.
Its much easier for everybody if you have made a will. It can be a very simple one and needn't cost much if you do a diy one. Someone has to deal with stuff after you have died and its easier if they are named as executor than having to faff with letters of administration.
Question Author
where do I get a DIY will?

there you go, everything you need for a tenner.
If the insurance policy is put into a trust it is paid straight to the beneficiary and does not form part of your estate, It will therefore not be counted for inheritance tax. Still very wise to make a Will to ensure all your assets go where you want them to.
ubasses from what THE OP Hs said, there wont be any inheritance tax
I note there is not inheritance tax wolfgang but OP asked for an explanation of putting the policy into Trust and that is part of it. On the other hand nobody knows the future, could strike lucky on the lottery or premium bonds.
If you name someone (your daughter) as beneficiary on your insurance policy the policy will pay out directly to the beneficiary and will bypass probate whether you have a will or not. You can name multiple beneficiaries and each will get an equal share.
Have a read of this:
Question Author
Sorry about giving a late thank you to you all,I have purchased a DIY Will kit and will get that sorted,plus,I think a good idea to name my daughter as the beneficiary.She can then sort everything out foor the rest of the family. are right,one never knows what good fortune one may have.
Happy Easter in advance.
One pitfall to avoid is having anyone who benefits from the will (and, for safety, the executor) be a witness to your signature.
Question Author
Agree there.

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