Helping your client’s business continue to run as smoothly as possible
Putting a business protection policy into trust helps to ensure the right people receive the right money in the event of a claim.
This trust tool helps you explain the benefits of putting a business protection policy into trust to your client. It also makes it easy to set up a trust.
What is a trust?
How do trusts work?
Who's involved in a trust?
What are the main benefits to having a trust?
What are the costs of setting up a trust?
Are there disadvantages?
How is a trust set up?
When does a trust end?
Can the trust be cancelled later?
When can a trust be set up?
Who controls the trust?
What are the trustees?
How many trustees should there be?
Do trustees have to be UK citizens, or live in the UK?
Who should be picked to be a trustee?
Can the trustees be changed later?
What if a trustee dies?
What are the trustee's main responsibilities?
How do trustees make a claim?
Do I need to tell you if the trustees personal details change, such as they move home or change their name etc?
What type of Legal & General trusts are there?
What is an RLP trust?
Who pays the premiums on the life insurance policy?
Who can cancel the policy
What are the main tax implications of using a trust?
Who can be a beneficiary?
Can the beneficiaries be changed later?
It's important to understand that in some cases, the trust itself might have to pay tax.
However in the majority of cases, there are unlikely to be significant tax considerations, before the life policy pays out and also after a claim, as long as the money is paid out of the trust immediately. However tax considerations can become increasingly important if the money is held in trust for longer and may require professional advice to help with this.
If more information is required about tax, our technical guides provide some further details.