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My life assurance policy is sorted. What do I do now?

(6 Posts)
HettiePetal Sat 09-Nov-13 13:48:59

I am clueless, truly. Please speak to me like you would a 5 years old - assume NO prior knowledge of financial matters wink

At long, long last I have taken out life assurance so that my 17 year old son has something if I kick the bucket. This is important anyway, I know, but in our case it's doubly so because we have very little family & he'd be on his own if anything happened to me sad

My policy is £100,000 for a fixed term of 10 years (I figure that if he's in his late 20's & I go, at least he'll have had the opportunity to establish a life & job for himself).

Do I have to make a will & specifically name him as the beneficiary? Is this something I can do myself with a WH Smith pack? Or do I really need a solicitor?

Because he's currently under 18, do I have to name a trustee? What happens if I don't.

If I die with debts, will he have to pay them out of the £100k?

All advice very gratefully received. All I want to achieve is for him to have some cash if anything happens to me.

TIA smile

CogitoErgoSometimes Sun 10-Nov-13 14:59:51

You are advised to make a will and, even though you can technically draw up your own as long as you follow certain rules, given that you're talking about trusts, trustees, guardians, executors and so on, it is well worth using a solicitor. If you die with debts they will be deducted from your estate and the remainder will go to your beneficiaries.

HettiePetal Sun 10-Nov-13 16:40:51

Thank you, Cogito.

Am I right in thinking that if the policy is left in trust to my son then he won't have to a) wait for probate to get the money, just needs my death certificate and b) have to pay any of my debts with it (if I have any).

Am I right in thinking that if the policy is left in trust to my son then he won't have to a) wait for probate to get the money, just needs my death certificate

YES

and b) have to pay any of my debts with it (if I have any).

YES

If the life assurance policy is written in trust, then the money never goes through your estate at all.

HettiePetal Sun 10-Nov-13 17:37:17

Thanks so much, manz. Really important to know that.

Shopgirl1 Tue 19-Nov-13 11:45:06

What way did you take the policy out? If you did It with joint policy owners being you and him and you as life assured then you don't need to include in will or set up a trust.
I'd ask the life company about options, if the above works you could possibly amend by deed of assignment.

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