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Posted: Mon Jul 21, 2008 9:52 am
by icebrick
The meeting with my creditors is coming up on the 30th of July. In the meantime I also wish to apply for life insurance for peace of mind. Can my creditors or my IP claim any of those funds should the unexpected happen? Cheers.
Posted: Mon Jul 21, 2008 10:03 am
by CoverItAll
You should consult an Independent Financial Adviser. I think that the policy may be written in Trust for those you wish to benefit from it. That way the claim proceeds are never yours.
Posted: Mon Jul 21, 2008 10:10 am
by Viki.W
Hey Ross, so you went for an IVA? I wish you all the very best of luck for your meeting. Viki X
Posted: Mon Jul 21, 2008 10:24 am
by kallis3
Good luck for the 30th icebrick.
Posted: Mon Jul 21, 2008 7:13 pm
by IFA Law
Hi Icebrick,
The proceeds from a life plan, unless written in trust, would form part of your estate on death and any creditors would probably be able to make a claim on them. If a plan were to be written in trust it is moved outside of your estate and from day one of the trust you are no longer the owner of the policy. You need to clarify with your IVA practitioner whether your creditors would be happy for you to pay into a plan that would have no benefit to them as the lump sum would be paid to the nominated beneficiaries. Hope this helps