Trust Information

After taking out an AA Over 50s Life Insurance Plan, provided by Legal & General, you may want to place it in trust to help ensure that the cash sum from the plan reaches the people you want it to.

If you don't place your plan in trust the cash sum will usually be paid into your estate, and distributed according to your will or if you don't have a will, according to rules set up by the government.

What is a trust?

Setting up a trust means that you (the settlor) give your policy to the trustees who then legally own your policy and look after it for the benefit of your beneficiaries.

Inheritance tax

Another reason you may want to place your plan in trust is to protect against inheritance tax. If you don't place your policy under trust it will become part of your estate which could increase the chance of paying inheritance tax, or increase the amount of tax payable.

Note that once you have created a trust it cannot usually be brought to an end before it has served its purpose. However, there may be circumstances when a policy can be taken out of trust. You should contact your legal adviser for advice. Whilst a policy in trust will not form part of your estate for Inheritance Tax purposes, on some occasions there is a potential for an Inheritance Tax charge to apply. Please contact your legal or financial adviser for further information.

It's your responsibility to make sure the policy meets your needs. If you need advice please contact a financial adviser. More information is in the Policy Summary – an important document you should read before applying.