Writing your life assurance in trust

When you set up a policy to provide the benefit to your dependents it may be beneficial to put the plan in trust. The trust becomes the owner of the policy benefits in the event of a claim. A flexible trust should not normally be used for mortgage related policies.

The main reasons for writing a policy in trust:

  • The trust structure can help minimise inheritance tax. This is because the policy benefits are paid into the trust, which is outside of your estate. Therefore when your estate’s inheritance tax liability is calculated the insurance is not included. For current inheritance tax figures and for more information please click here
  • When a life assurance policy is written under trust the benefit does not go through probate and can therefore be paid out more quickly.
  • To protect the benefits from creditors of your estate.

You do not have to write your policy in trust from the outset and if you prefer you can add the trust at a later stage once the policy is running.

NOTE: There are other reasons for setting up a policy under trust, and it may not be suitable for everyone. We recommend that if you are still unsure about whether or not to use a trust you should seek legal advice.

Each life assurance company has their own trust application and guide to completing them below.

Trust documents

AIG Trust Form & Guide
Aviva Trust Form & Trust Guide
Beagle Street Trust Form & Guide
Canada Life Trust Form & Guide
Legal & General Trust Form & Trust Guide
LV= Trust Form & Trust Guide
Royal London Trust Form & Guide
Vitality Trust Form & Trust Guide
Zurich Trust Form & Trust Guide
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