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| Life Insurance Basics |
A trust is a method of ensuring that the proceeds from a life insurance policy get to the right person, in the shortest time possible, while at the same time reducing or eliminating the amount of inheritance tax owed on your family. By using a life insurance policy in the trust it is also fenced off from your real estate, so inheritance taxes are avoided.
Finding the right life cover is often viewed as a daunting prospect but there are some basic steps that anyone seeking life insurance should follow, perhaps the most important is placing your policy in trust, this will not only ensure that your family gets paid as quickly and as accurate as possible, but it can also save you a bit of tax! So read on, this free life insurance advice may be worth the few minutes it takes you to look it up.
Trust is a topic that will be of interest to retirees. But trust is something that everyone considering a life insurance policy should seriously consider.
Trusts are relatively simple and inexpensive to set up and any good life insurance broker or attorney can set up the trust on your behalf. Usually no additional fees are incurred.
Trusts consist of, settlor, trustee, and beneficiary.
The settlor is the policyholder, and the person setting up the trust, trustee or trustee is the person responsible for managing the trust in the event of the settlor's death, the beneficiary or beneficiary, is the person receiving the money from the trust.
Placing the policy in a trust will also avoid the need for probate processing, which can greatly speed up the claims process, ensuring your loved one receives the value of your policy in the shortest possible time.
It goes without saying that guardians must be considered carefully, while it is possible to change their trust once setup, it is always best to give careful consideration as to which would be the best place to represent your wishes should you die.
As always, it is advisable to speak to a professional when making any financial decision, so speak to a good broker when looking at life insurance to make sure you get the possible solution for your own needs.
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