Should I put over-50s life insurance in trust?
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In short: Writing over-50s life insurance in trust pays the cash sum directly to named trustees for beneficiaries, usually avoiding probate delay and potentially keeping the payout outside your estate for inheritance tax. Trusts suit policies meant for funeral costs or gifts to family rather than estate liquidity.
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Reviewed by Kaiser Khan
Without trust, payout forms part of your estate — executors distribute per will after probate, which can take months. Funeral directors often need payment before probate completes.
Discretionary or bare trust structures differ in tax treatment and control — trustees decide timing and beneficiary shares under discretionary trusts; bare trusts pass outright to named beneficiaries.
Trust forms are free from most insurers at policy start — retrofitting trust later may need insurer consent and legal advice.
Trust does not automatically exempt payout from inheritance tax in all cases — complex estates need solicitor review. See over-50s life insurance explained and gov.uk inheritance tax guidance.
Primary source: gov.uk/trusts-taxes
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