Insurance Trust

Life Insurance helps provide liquidity to meet the financial needs of your loved ones while an Insurance Trust let you have a more flexible control on distribution, even after your lifetime. To ensure the insurance proceeds will distribute to the beneficiaries on time according to your personal wishes.

How does it works?

You, as the settlor, create an Insurance Trust which allows the Trustee to hold an insurance policy on your behalf.

You can transfer the insurance policy to your trust by assigning the existing policy.

After your Iifetime, the insurance proceeds from the policy are paid directly to the Trustee as the policy beneficiary who would manage and to distribute the trust fund according to the terms of the trust deed along with your letter of wishes to benefit your family or other beneficiaries

Whether the trust fund is to provide Iifetime income for your surviving spouse, to fund education for your children or grandchildren, or to contribute to designated charities, it can simply be done by recording your wishes in a Letter of Wishes which provides guidelines for the trustee to follow after your lifetime.

What are the benefits?

Control over distribution after your lifetime. It is very beneficial especially if your spouse or child has poor spending habits as an Insurance Trust gives you control, even after your lifetime, over how the insurance proceeds are used for your family.

Protection of young beneficiaries. A trust is an effective tool to protect the interests of your loved ones who may be too young or not be capable to manage their own affairs.

Asset protection. The cash value of your policy held by a properly structured Insurance Trust is protected against potential creditor claims.

Confidentiality. Both the identity of beneficiaries and yours are kept private as the insurance policy is held in the name of the Trustee who is also named as the policy beneficiary.

Family wealth protection. Insurance proceeds can be
protected by an Insurance Trust from improvident heirs, fortune hunters marrying into the family and inept heirs who may dissipate the family wealth.

Tax saving. It is possible to reduce the impact of various taxes (i.e. estate taxes, income taxes and wealth transfer taxes, etc.) depending on settlor and beneficiaries’ country of residence.