Gift trust

Frequently Asked Questions

• What are the tax implications if you place an existing policy in trust?

  If the policy is being gifted to the trustees, then there shouldn’t be any income tax implications.

  However, inheritance tax may need to be paid as the policy is a gift from the owner to the trustees. This would either be a chargeable lifetime transfer or a potentially exempt transfer, depending on the type of trust that’s used.

• How many trustees do you need?

  There should always be at least two trustees – the person creating the trust can count as one of these. If a trustee dies, or no longer wants to be a trustee, then they can replaced.