Planning for your family’s future shouldn’t be complicated. At Spirit, we’re all about giving you peace of mind with life insurance that’s fast, affordable, and flexible. But here’s a question we hear a lot: Why do I need a trust? Let’s break it down.
A trust is a legal tool that keeps your life insurance payout separate from your estate. It’s optional with Spirit, but it’s a game-changer for protecting your loved ones. Whether you’re covering a mortgage, your kids’ education, or everyday expenses, a trust ensures your payout gets where it’s needed - quickly and efficiently.
Here’s why a trust might be right for you:
- Save on Inheritance Tax: Without a trust, your payout could face a 40% tax if your estate exceeds £325,000. A trust keeps it tax-free for your beneficiaries.
- Speed Up Payouts: Skip probate delays - your family gets the money in weeks, not months.
- Take Control: Decide exactly who benefits (like your partner or kids) and even set rules, like waiting until your children are 18.
- Protect Unmarried Partners: If you’re cohabiting but not married, a trust ensures your partner inherits without legal hurdles.
Picture this: You’ve got a £500K policy. Without a trust, taxes and probate could shrink it to £300K or less. With a trust, your family gets the full £500K - fast. It’s that simple. Financial experts recommend coverage of 10X your salary, and a trust makes sure every penny counts.
Not sure if you need one? All of our policies are placed in trust as a free additional benefit and you can speak to one of our advisors today to understand their purpose. Our team is here to answer your questions and help you every step of the way. With Spirit, you’re in control - secure your family’s future today.