Trusts are more versatile than you think

Shelley Walker of Royal London puts paid to some misconceptions about trusts

At Royal London we want to make trusts as easy as possible for advisers and their clients. So we've been working at removing some of the misconceptions around what you can use trusts for, and also when you can use them. Our hope is that this will make it easier for you to deliver a better and more holistic solution for your clients as the need arises.

Here are some reasons why we believe trusts should be reappraised in a new light.

More than just a tax planning tool

As an adviser, you’ve worked hard to show your clients how valuable protection can be. Protection needs are wide ranging, but I suspect all of your clients have one thing in common – they want the money to reach the right people quickly. Trusts can help to do just that, as well as helping mitigate inheritance tax.

Helping money get to families quicker

What if there was a mechanism for ensuring that the money from protection could reach the beneficiaries more quickly? Well, there is. Writing policies under trust ensures that payments can be made with far less delay and red tape. In the case of life cover, probate will not be required if the plan is written in trust. The trustees will be able to distribute the money in line with the policyholder’s wishes, and so avoid not only a long wait but also probate fees (in Scotland the process is called Confirmation).

Is it too late to help clients with plans already in place?

The good news is that it isn’t. For all personal protection arrangements, excluding Relevant Life Plans, trusts can be put in place at any time. We’ve made it easy for you to write plans under trust when applying for the cover or after the plan has been put in place. You can even arrange the trust online with Royal London's online trust service.

We’re here to help

All Royal London trusts are designed around our products. This makes it much easier for us to help you find the right type of trust for clients – take a look at our trust tool on our website. There’s also a range of useful guides to help clients understand trusts and help them choose the right trustees. You might also like to take a look around our Technical Central page which may help answer your questions on trusts and taxation.


More articles