Hi.
Am a financial adviser, so should be able to help you out.
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Yep, your hubby is the grantee.
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Current beneficiary is who is alive at the mo who you want the money to go to. More on this is a sec.
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Potential future beneficiaries is anyone who isn't here yet but who you want the money to go to. People usually put something on the lines of 'any future children' in here, if anything.
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Trustees are people that you trust to make sure that your hubby's wishes are carried out. People usually put in a brother or sister or close friend.
You have two options really....
If something happens to your hubby, all of the money is released to you. You can use it to pay off debts, invest for the children's future, take an income from it to live off instead of your hubby's income etc etc. Basically you are in charge of using it to do the best you can for yourself and the children.
This option means the most flexibilty for you, but means that if you were to die, any amount left could be liable for IHT when being passed on to your children. Some people don't like this option because if you were to have another partner, he could claim the money, rather than it being earmarked for your children, IYSWIM.
Or, the other option is.... the proceeds can be divided between yourself and the kids, (you can put %s on the form if you want). You can do as you please with your bit, but any money left to the kids will remain in the trust until they turn 18 or you take some out. To take it out you will need to get all of the trustees agreement that the money is to be used for the children's benefit.
This second option means that the money gets passed straight to the children without having to pass through your estate (and could be subject to IHT) but may mean that you have some problems convincing a sister in law that never liked you much anyway that paying off your mortgage is in the best interests of the children whereas she thinks it should be saved for them for university and you should work an extra job to pay the mortgage (FOR EXAMPLE!). Choose your trustees wisely!
Well done on completing the form, its the cheapest way to saves thousands of pounds!
Just remember the trustees need to sign it as well and the form returned to the insurance company for it to be in force. You can send it in any time you want to and can replace it with a new trust at any time as well, if circumstances change.
I hope this has helped and feel free to post anything more if anything needs further clarification.
Duke
ps- your financial adviser should have helped you with this! That's part of what they get paid their commission for!!!!