All you need to know about Trusts for Life insurance. Get yours now!

All you need to know about Trusts for Life insurance. Get yours now!

Setting up Trusts for Life Insurance gives you greater freedom and control over your Life Insurance payouts. Whether to protect your Life Insurance policy from creditors and tax, or to control the way your beneficiaries spend their inheritance, an Irrevocable Life Insurance Trust is the best way to take control over your legacy.

Benefits of Trusts for Life Insurance

Setting up an irrevocable Trust for your Life Insurance policy ensures that your Life Insurance policy pays out to a Trust of your choosing, structured accordingly. This allows you to control how your life insurance pay-out is invested, stipulated in your Trust agreement. Most commonly, the beneficiaries of an ILIT (irrevocable life insurance trust) will include the spouse and/or children of the deceased.

Irrevocable means that your Trust cannot be amended at any point once it has been created. While this may seem limiting, its effects actually safeguard your investments by allowing no-one to tamper with them once you have passed (like trustees), safeguarding the contents for your beneficiaries.

By stipulating the terms of the Trust inheritance you prevent your beneficiaries from spending their inheritance in any way other than what you intend for. This insures your beneficiaries are covered from creditors and outstanding fees when you die.

Funding Trusts for Life Insurance

If creating an ILIT sounds like a good idea to you, then you will need to plan how to fund it. Funding Trusts for Life Insurance involves the signing and submission of documents to the master of the high court, in order to enter the legal system correctly. If you’re looking for more information on how to fund your Trusts for Life Insurance, get in touch with Crest Trust now.

The major benefit or creating a Trust for Life Insurance is that it also protects your Life Insurance policy from undergoing Estate Duties. Your Life Insurance pay-out typically forms part of your Estate and is thus liable for Estate Duty. With Trusts for Life Insurance you’re able to prevent this from happening (though of course you still have to pay Trust fee).

If you’re looking for Trusts for Life Insurance, then setting-up an Irrevocable Life Insurance Trust in the best way to go: contact Crest Trust today for more information.

+27 12 643 1049

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Crest Trust Services (PTY) Ltd. is an Authorized Financial Service Provider with FSB No: 28966