Life Policies in Trust
If your life insurance policy is set up “In Trust” from the start date, the benefits will be paid to the Trustees on your death. They can then pay the proceeds directly to your nominated beneficiaries - in this case it can be the Funeral Directors who you have chosen with Zimfunerals to repatriate your body back to Zimbabwe. This happens immediately the company are notified of death and have received the relevant claim form and death certificate. By arranging a Trust the proceeds do not have wait for any grant of probate in order to be paid out to your chosen beneficiary. The pay out is therefore much quicker which is very useful if the funds are needed to cover funeral and repatriation costs.
In addition to making the whole process of releasing the money much easier, it also means that if the policy proceeds are “In Trust”, they do not form part of your estate on death. This means that they are exempt from Inheritance tax.
If you have an estate valued in excess of the “nil rate band” £325,000 under the current Inheritance tax limits, for the tax year 2009/10, any excess over this amount is taxed at 40%. By having your policy in Trust this will avoid this tax on the proceeds.
Arranging the Trust is very simple. All you need to do is think of whom you would like to benefit from the money, (the beneficiary), whom you would like to act as your Trustee,(the person(s) who will receive the money on behalf of your chosen beneficiary.This is often the same as your beneficiary) and then complete a Trust form that we can provide and guide you through.