Avery Associates

House Clearance & Probate Valuation Services


  • HOME
  • HOUSE CLEARANCE
    • Probate House Clearance
    • House Clearance
    • FAQ
    • Hoarder House Clearance
    • Garden Clearance
    • Charity Donations
    • Recycling
    • House Clearance Gallery
    • Our Locations
  • PROBATE VALUATIONS
    • PROBATE HELP
      • Probate Valuation Guide Fees & Advice
      • Probate House Clearance
      • Executor Assistance
      • Solicitor Assistance
      • Our Locations
    • Probate Valuation Explained
    • RICS Property Valuation
    • Classic Cars
    • Jewellery
    • Coins
    • Books
    • Stamps
    • Vintage Toys
    • Records
  • REVIEWS
  • NEWS
  • ABOUT
  • CONTACT
    • BOOK A PROBATE VALUATION NOW

Probate Guide – Do Life Policies Form Part Of An Estate?

February 28, 2016 By Avery Associates

Do life policies form part of an estate?

Life insurance policies, like other assets in an estate, will normally be part of a deceased person’s estate, and, as a result, a substantial part of the proceeds of a policy can be taken in order to pay IHT liabilities.

It is, however, possible for a life policy to be ‘written in trust’. This means, in effect, that the Life Company is a trustee of the asset, with legal title, (which means it is never the possession of the deceased) but, as trustees, they have an obligation to pay out the sum assured should a specified event occur, which, in this case would be the death of the insured person, to the person specified in the trust deed.

Writing a life policy in trust has two significant advantages:

1.The beneficiary does not have to wait for probate, which, even when there is a will, can take a very long time – The life company will make full payment, immediately, on production of a death certificate. Until probate is granted, the beneficiaries of a will are unable to touch the assets of the estate. This means that, for example, they cannot use the deceased’s funds to make mortgage payments, or pay bills, or deal with banks, and this can be a source of considerable distress to beneficiaries, particularly if they are dependents of the deceased.
2.The sum assured will not form part of the estate for IHT purposes.
Broadly, there are two types of trust available: absolute and discretionary. Create a fixed trust if you are sure that the beneficiaries will not change, otherwise create a discretionary trust. When creating the trust, you need an additional person who will be prepared to act as a trustee.

Most life companies allow you to create your trust on the Internet, and the process is simple. If you are setting up a life policy, it is a good idea to write it in trust at the time of the proposal, but you can put it into trust later on.

A useful guide to the process of creating a trust can be found here:

http://www.legalandgeneral.com/life-cover/existing-customers/online-trusts-tool/
As part of the probate process, all assets belonging to the deceased will need to be valued, so that Inheritance Tax liability and Avery Associates are specialists in the valuation of the chattels of the deceased, as well as any real estate (Houses or land.) For more information, please contact us.
Note: The above information is for general guidance only, and should not be considered as an authoritative statement of the law. If in doubt, consult a legal advisor.

Related

Filed Under: FAQS Tagged With: life policies, trust

Our House Clearance Services

We provide a full house clearance and property management solution:

  • We clear hoarded houses, regardless how big or how cluttered
  • We clear all types and sizes of property, irrespective of location, or access is restricted or where parking is difficult or not available.
  • We can help avoid water damage by draining the central heating system.
  • We can secure the property and change the locks.
  • We can reinstate the gardens and maintain them whilst the property is empty.
  • We can provide 24 hour security to eliminate the risk of squatting or unlawful occupation.

As well normal house clearances we specialise in clutter clearance and we can clear a hoarded house which may contain years of accumulated possessions, or which have abnormal amounts of general household items, sometimes as a result of compulsive hoarding syndrome.

Equally we can help to clear a property where the occupants were previously unwell and unable to care for themselves or their property which sometimes results in insanitary, dangerous or just plain unpleasant conditions.

More info

What We Do

Get A Quick Quote

Client Reviews

Margaret Campbell
Jun 24, 2022
 by Margaret Campbell on Avery Associates
Amazing Service and Support

Hello Pam / Jeffrey, As requested, sorry it is late …. I forgot☹️ I used Avery Associates for probate content valuation, clearance... Read More

Susan Arm******
Jun 2, 2022
 by Susan Arm****** on Avery Associates
Respectful Probate Valuation

Mr Avery did a wonderful job assessing the household contents for probate and I very much appreciate his respectful approach while valuing the items at... Read More

Your very welcome Susan

Patrick Macavoy
May 20, 2022
 by Patrick Macavoy on Avery Associates
A Seamless Experience

I had my late mother's flat to clear out. The contact with AA was a pleasure from day one, starting with the receptionist. Jeffrey then came out to look... Read More

Page 1 of 45:
«
 
‹
 
1
2
3
›
 
»
 

Share, Email or Print

Looking For Something?

Our Latest News & Advice

  • How Did We Become Such a Polluted Britain?
  • Inheritance Rights of Non-Biological Children in UK
  • United Kingdom Tackling Plastic Waste Resolutely


Avery Associates
291 Mitcham Rd
Tooting SW179JQ

Tel: 0800 567 7769 or 0208 640 0044

Services provided throughout London and the Home Counties. View our clearance case studies.


Website Terms | Privacy Policy | Sitemap | Copyright © 2005-2018 Avery Associates
Website Development by Avara Web Media