Yes, there are several different types of 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.
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.
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.