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Hi I'm Peter O'Grady
In today's life insurance advice video
I want to talk to you about choosing life insurance trustees
As we have said before life insurance trusts are a topic
that would be of particular interest to the over 50's life insurance market
However a trust is something that anybody buying a life insurance policy should consider
as it could save you many thousands of pounds in inheritance tax.
When choosing the trustees of your life insurance policy it is important to remember
that you are going to be reliant on the trustees carrying out your wishes in your absence
and as such they should be someone who you know well
and you can trust, not to use the trust to benefit themselves unfairly
Is a professional, reliable person
Will be able to overcome any personal emotion on the event of your death
To think clearly to carry out their duties and can be relied upon to act impartially.
This can be especially important in circumstances where there are children from more than one relationship
or in other circumstances where partisan may arise.
Is organised and can be relied upon to keep good records of decisions and actions to prove proper management of the trust.
It also vital that you choose someone who is likely to survive you, for example your parents may be an obvious choose because you trust them.
However they may be unlikely to survive you.
A solicitor can be appointed as a trustee, and in this case it is the practice that is responsible not the solicitor themselves so you are
Guaranteed they or their successors will survive you. However they may charge you for this service.
If the beneficiary is a minor the trustee will be responsible for ensuring the money is invested wisely for the child this could be
in the form of a cash investment, the payment of school fees, a combination of investments.
So in this case in this case it is advisable to choose someone who can make a good informed decision.
Even though you have appointed a trustee you should also make a will.
In your will you can dictate how you wish any such money to be administered and the trustees must abide by this.
So to recap a trustee should be someone whom you trust implicitly, is of a similar age or younger, who is in good health to ensure there is every chance of them surviving you.
Is going to be able to put their grief to one side at a highly emotional time and to act calmly to execute their duties as trustee
Can be relied upon to act impartially especially if they themselves are beneficiary of your estate.
Is reliable and is likely to execute their duties in a proper manner and to be able to account for any actions taken.
Will execute the wishes laid out in your will with minimum fuss and if a solicitor is appointed as trustee they should be able to
give you clear indication of any likely fees involved as acting as a trustee.
As always it is advisable to speak to a professional expert when making any financial decision.
So speak to a professional when seeking any life insurance advise to ensure you get the best possible solution for your personal circumstances.
If you complete the quote form on JustLifeInsurance.com you will be put in contact with a life insurance expert who can answer any questions you have
and take you through all the options to ensure you find the best possible policy for your personal circumstances.