AEGON announces the launch of its free online trust analyser tool to help advisers identify which of their clients’ mortgage and family protection policies should be placed in trust.
The tool will analyse the client’s situation, showing the advantages and disadvantages of a trust for their individual circumstances.
AEGON warns that a range of problems and delays can arise due to legal issues when claiming on a life insurance policy which has not been written in trust, especially if the policy is written on a single life basis. For example, payment to customers’ intended beneficiaries may be delayed; payment may not go to their intended beneficiaries; too much inheritance tax may be payable and the policy may not be protected from creditors.
Circumstances where a trust may be appropriate would be if the proceeds are to pass to children, or in the case of unmarried couples where there is no inheritance tax (IHT) spouse exemption, or if there is no will in place a trust could control who benefits from the proceeds rather than passing through intestacy rules.
With so few protection policies placed under trust, AEGON highlights that many families may be unaware they are leaving themselves vulnerable. Advisers can help avoid unnecessary inheritance problems for their clients by accessing the free AEGON online trust analyser tool and identifying if a trust is appropriate.
Elaine Cruickshank, Tax and Trust manager at AEGON says:
‘The tool takes you through a few simple questions which will help you discover if a trust is appropriate. It only takes a few minutes to find out if placing the policy in trust is the right thing to do.
‘For too long, trusts have been considered complex and daunting. We want to demystify the whole process. Trusts can be very straightforward. You can easily place a policy in trust immediately on application, or you can place an existing policy in trust later.
‘We think that the vast majority of protection policies should be written in trust. At the moment, many people are unwittingly exposed to completely avoidable risks. Our trust analyser tool will enable advisers to take steps to ensure their clients are properly protected.’
For the vast majority of personal protection policies, a flexible trust is usually the most appropriate solution. AEGON has a flexible trust deed that can be downloaded free of charge from its website.
Source : AEGON Press Release