Putting protection policies in trust is a great way to make sure your clients’ loved ones or business is protected. Our guide explains why you should set up a trust for your client, the different trusts we offer, and how to set one up using our online trusts or paper forms.

Benefits of a trust

By placing your client’s protection policy in a trust, they can benefit from:

 

 

Better control

Trusts make sure the money goes to the right people at the right time.

Faster payments

Trusts exclude life insurance benefits from probate, so the money can be paid quicker.

Reduced inheritance tax

The money paid out won’t pay into your client’s estate, which helps to reduce any potential inheritance tax bill.

Protects those who are most important

Your client can nominate the beneficiaries they want.

Our range of trusts

We have different types of Trusts to suit your client’s needs:


Type of Trust

Reason for cover

Available for Single/Joint plans?

Change beneficiary?

Online access

Who benefits?

Flexible

 Personal

Yes

Yes

Single life policy only
 

Your client names default beneficiaries who are first in-line to receive the benefit. The trustees can also use their discretion.

Discretionary

 Personal

Yes

Yes

Single life policy only
 

The trustees have discretion over who will receive the benefit, but specific guidance can be provided in a letter of wishes.

Survivors

 Personal

Joint life policy
only

Yes

Yes

The surviving life insured will automatically receive the benefit (if they survive the first to die by 30 days).

Relevant Life Plan

Relevant Life Plan

Single life policy only

Yes

Yes

The trustees have discretion over who will receive the benefit, but specific guidance can be provided in a letter of wishes.

Business Protection

 Share Protection Key Person

Single life policy only

Yes

Yes

The co-business owners.

Absolute

 Personal

Yes

No

No

Your customer names the beneficiary at the outset and it cannot be changed.