iTrust Family
Family Protection & Life Cover Planning
Key Features of iTrust Family
iTrust Family is ideal for young families and working professionals who want a simple, affordable way to protect their loved ones. It’s perfect for those taking out life or illness cover and wanting to ensure any payout is handled quickly, securely, and without tax or probate issues.
Benefits
Policy payout / probate wording
Where the policy has been validly placed into trust, the Trustees can normally claim the policy proceeds directly from the insurer without waiting for probate solely in relation to that policy, subject to the insurer’s claim and evidence requirements.
Covers Mortgages & Family Costs
Designed to support mortgages, childcare and immediate family costs — Trustees can use available trust funds to provide practical financial support for the family, subject to the terms of the trust and the circumstances at the time.
Flexible Asset Holding
Can receive additional gifts over time — the Trustees can accept further cash, savings, shares or other suitable assets through the appropriate gifting documentation, subject to Trustee review.
Letter of Wishes / control
Your Letter of Wishes allows you to give the Trustees clear guidance on how you would like the funds used, while the Trustees retain the legal discretion required by the trust.
Professional Setup & Ongoing Support
Our legal team and iTrustee service guide the process, ensuring the trust is correctly structured, compliant, and well-managed from day one.
Inheritance tax wording
Where the policy and trust are correctly structured, death benefits can normally be held outside the insured person’s estate for inheritance tax purposes.
Add the surviving-partner option
For couples using a joint-Settlor trust with separate single-life policies, the trust can be drafted so that the surviving partner may, at the Trustees’ discretion, receive or benefit from all or part of the deceased partner’s specified policy payout, while the balance can remain within the trust for the family.
This should not be described as an automatic entitlement. It is a discretionary option and applies only where the appropriate clause has been included in the trust drafting for the relevant policy.
Additional Features
Included with your trust at no extra cost
Start with iTrust Family Today
Where the policy has been validly placed into trust, the Trustees can normally claim the policy proceeds directly from the insurer without waiting for probate solely in relation to that policy, subject to the insurer’s claim and evidence requirements. The proceeds are then administered in accordance with the trust.
As your planning becomes more complex, iTrust121 can introduce additional specialist planning alongside your Family Trust, with an existing-client upgrade pathway.
Getting Started
Speak with your iTrust Adviser or contact iTrust121 to explore your options and see how iTrust Family could help protect your loved ones’ future.
Contact UsFrequently Asked Questions
Why include life assurance in estate planning?
Because a life-policy benefit may create substantial capital immediately following death.
Who receives that money and how quickly it becomes available can matter considerably.
Can policy proceeds be received without waiting for probate?
Where death benefits are properly payable to trustees rather than the estate, the trustees can normally deal with the policy claim separately from the ordinary probate process.
Does putting life insurance in trust automatically avoid inheritance tax?
The precise tax treatment depends upon the policy, ownership and trust arrangements.
It should therefore be considered policy by policy.
What about Critical Illness benefits?
Benefits intended for the insured person during lifetime should be distinguished from death benefits intended for the family.
The policy and trust wording should preserve that distinction.
Can my surviving spouse receive the death benefit?
Where the trust structure makes them eligible for the relevant policy benefit, yes.
This requires particular care where the spouse is also a settlor who is otherwise excluded from the main family trust.
Important information
The benefits described are general illustrations of how the relevant iTrust may operate when appropriately structured and funded. Actual legal, tax and asset-protection outcomes depend on individual circumstances, the assets involved, the terms of the trust and any supplemental instruments, effective implementation and applicable law at the relevant time. Trustee decisions remain subject to the trust deed and their legal duties. Tax treatment and protection from third-party claims cannot be guaranteed and specialist advice may be required.
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We offer a wide variety of iTrust options to ensure every client finds the perfect framework for their needs. Whether you require global asset protection or pet care arrangements, there’s an iTrust designed for you. Explore our complete range of iTrust products today and find the solution that best fits your protection and planning goals.