Pilot Trust for Disabled Beneficiary


(Victoria Armour) #1

If a client has a life insurance policy for the benefit of a disabled child can it be assigned to a discretionary trust created in their Will or would it be better to create a pilot trust now for the benefit of the disabled child and the subsequent payment on death. The amounts (including the rest of the estate) would be below the IHT threshold. If creating the pilot trust, should the settlor be included as trustee incase the trust is used during their lifetime? Many thanks

Victoria Armour
VP Legal Solicitors


(Andre Davidson) #2

If the policy is for a disabled child why is the policy not already in a trust set up at outset? The life company would have standard trusts for this - just ensure that the clauses meet the beneficiaries need.

It should be possible to put the policy into one of the standard trusts now as a pure life insurance policy will have no value and contributions for the policy will be gifts out of income.

Andre Davidson
Finantium