Search
A trust is a legal arrangement, under which the policy owner creates a legal framework (the trust) to hold assets for third parties.
The three key parties to a trust are the settlor/s (those who own the policy), the trustees (who manage it) and the beneficiaries (who benefit from the trust).
The trust is run or managed by the trustees. It is then the trustees’ responsibility to ensure the beneficiaries receive the benefit of the policy, in the event of a claim.
The various Insurer trust forms can be found at the bottom of this page. If you have any questions please get in touch.
Placing a policy into trust is an ‘irrevocable’ act. Once you’ve done it, you can’t change your mind later on and withdraw it from the trust.
When you put your policy into trust you have effectively given it away to the trustees to look after for the beneficiaries.
Usually the Settlor (you) will be a trustee too so you retain some control, but any actions will need to be signed off by all of the trustees – so make sure they are people who will protect your interests in the long term.
Yes, there are several different types of Trust...
Read More
Discretionary Trust
These trusts allow you to include a wide range of potential beneficiaries and to add beneficiaries at a later date once the trust has been set up. The trustees manage who will receive any benefit from the policy, and how much they will receive.
Some people choose to complete a ‘letter of wishes’ along with this type of trust, to give their trustees guidance as to who they would like to benefit from the policy.
Flexible Trust
Sometimes called a ‘power of appointment’ trust, a flexible trust is very similar to a Discretionary Trust. The key difference is that you name the person or people that you would want to benefit from the proceeds of your policy. You also decide how you want the proceeds of your policies to be split between the beneficiaries.
Split Trust
When you put your policy into trust, you cannot usually be a settlor as well as a beneficiary. This can be an issue if you have a life and critical/serious illness policy, or if you would like to retain terminal illness payments for yourself.
A split trust allows you to separate out which benefits you would like to retain for yourself (the settlor), or gift to your beneficiaries, making it a popular option for those with life and critical illness cover.
*Some providers require separate forms to be completed for joint policies. These forms are often called ‘joint’ or ‘survivorship’ trusts.
**Some providers trust forms are split by default. Ensure you read through the form you complete carefully, along with the corresponding Trust Guide.
| Provider | Trust Form & Guide |
|---|---|
| AIG | Discretionary Trust (Single Life) |
| Aviva | |
| Beagle Street | Trust Form Guide |
| Budget Insurance | The form can be found in the app or in your online account |
| The Exeter | Trust Forms |
| Guardian | Trust Form |
| HSBC | |
| Legal & General | Discretionary Trust Guide & Form |
| LV= | |
| OneFamily (Over 50s) | Flexible Trust Form & Guide Nominating a Beneficiary Form |
| Royal London | |
| Scottish Widows | Trust Form |
| Shepherds Friendly (Over 50s) | Flexible Trust Declaration Nomination Form |
| Virgin Money | The form can be found in the app or in your online account |
| VitalityLife | |
| Zurich |
*Please see the current Inheritance Tax figures for further information
