A common issue that arises is dealing with insurance companies over the names on insurance policies. Technically, insurance should held in the name of the owners of a property.
In the case of a trust, the legal owner on the title of a property is the trustee/s (while the beneficial owner is the beneficiaries). Clients tend to say “ the owner is the trust”, for example the “Smith Family Trust”. Assuming the trustees are Mary & John Smith and an independent trustee called XYZ Trustee Limited, the better description is “Mary Smith, John Smith and XYZ Trustees Limited as Trustees of the Smith Family Trust”. That's a bit wordy, so alternatively the shorter version of “Mary Smith, John Smith and XYZ Trustees Limited” will legally suffice.
A minute referring to the existence of the insurance policy or life policy in such circumstances, prepared and signed by the trustees, is prudent.Thanks Janet. I also want to say thank you so much for your books. I started reading Money Secrets last night - I have been wondering why I just haven't been dealing with stuff and been so stuck lately and your writing is bringing some clarity. So I will be shaking off the Rabbit ears and Ostrich feathers! -- and giving copies of the book to my nephew and niece. Cheers, Sue - Sue Pickernell-Crow, October 2018
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