Not the best of days yesterday.  Not only did I get the day of an appointment wrong, but on my way to another, I went to the wrong address to be confronted by some poor woman only in her T Shirt and pants at the door.  “Er…this isn’t such and such a house is it?”, “No”, she calmly replied, “that’s the next road” as I scuttled off in my embarrassment apologising profusely!


Still, appointments sorted, everyone happy and I dash off to Stroud Brewery for the monthly pub quiz with the Five Valley Fools.  Bearing in mind the calibre of our team (Ray- an ex-submariner and nuclear scientist, Mareia- his delightful wife, Dug- classically trained musician and financial adviser, Sue- Teacher and Jane, who knows all the lyrics to “A Night at The Opera”) we didn’t do very well, in fact worse than last month.  Mind you, one of the saving graces was “From which Queen album was Bohemian Rhapsody?” – Yes!


Anyway, on to the subject of the day.  A few weeks ago the Duke of Westminster sadly passed away.  A few days later I noticed one of the national newspapers was up in arms on the fact that his estate had avoided a huge chunk of inheritance tax.  I have no idea as to the accuracy of this article, but it does raise a really valid and important point that we can all benefit from.


It’s all about Trust as they say. I’m no expert on Trusts (yet) but I’ll explain it as I understand it.  A Trust is an entity in its own right, and people set up Trusts for many reasons.  I use them with protection products, especially life cover.


Usually once you die, the life cover gets paid into your estate, because the policy is owned by you and subject to inheritance tax and is treated accordingly.


If you create a trust, (you’ll become something called a “settlor”), then the Trust will own the policy.  You’ll need to have people that look after the Trust, both during and after your death called “trustees” and they will make sure that the person/people who you want to benefit from the policy (beneficiaries), receive the pay-out.


As you don’t then own the policy (the trust does), then after you die the policy pays out, but is not part of your estate.  Therefore, not subject to inheritance tax.  And it gets to the beneficiary far quicker.




When you sort out your life cover, always discuss Trusts with me.


And don’t forget.


A little Trust goes a long way!


Trust me, I’m a Mortgage Adviser