Online Trusts FAQs

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Is a Trust valid when created online without any signatures?

Yes. It’s possible to create a Trust without signatures so long as you comply with the ‘three certainties’:

  • Certainty of intention (to write a policy under trust)
  • Certainty of objects (also known as beneficiaries)
  • Certainty of property (our policy)
  • Our trusts comply with all of these certainties.

 

There’s a declaration to accept in the Trust section, can my customers still submit a case without ticking it?

Yes they can. The Trust can be partially completed and the application submitted so your customers can see the policy decision. You can always go back and add any details to the Trust up to the point of completing a start date. That’s when you cannot make any further changes and a reminder message will appear to ensure that you go back and tick the Trust acceptance if you didn’t in the initial completion.

Can I complete the Trust online then print the form to get signed after?

No, the Trust is designed to be completed online and will not need any signatures, so there’s no option to print the Trust. If you prefer to obtain the customer’s signature, then you can still follow our paper Trust route.

Why is it beneficial to only receive part of the Terminal or Critical Illness benefit and place the rest in Trust?

As well as giving flexibility over how much Terminal Illness benefit or Critical Illness benefit the customer retains, this can also help avoid Inheritance Tax. Where a split trust is used, a large pay out on Terminal Illness may be retained in the estate on death and contribute toward a possible Inheritance Tax liability.

Why can’t I complete the cross option agreement online for Business Protection?

The cross option agreement is a separate legal agreement from the Trust and is also often a bespoke document. This may need to be drafted by a specialist and does not need to be seen by Legal & General. The cross option covers details regarding the option to sell a share on the death of a shareholder, as well as the option for the other business owners to buy shares, but is not part of the trust arrangement relating to the life insurance policy.

How many trustees must I have for an online Trust?

There is a requirement to have at least one additional Trustee to ensure payment of the benefit can be made quickly at point of claim.

Why is the online Survivor’s Trust the only option for joint life plans?

This is the most commonly used Trust for joint policies. It ensures that the surviving life insured receives the policy proceeds in the event of a claim, so long as they survive the first to die by thirty days. If they don’t survive by thirty days, the trustees would have discretion over who to pay the proceeds to.

 

Why can’t I complete the Absolute Trust online?

This Trust is quite specific and rarely used. We felt that it was better to leave this in our current paper journey.

If you want to know more about out Absolute Trust please go to our Trust tool

Can I create a split trust online?

Yes, the online Trust can be set up as either split or non-split, with the new feature of being able to retain as much of the Terminal or Critical Illness benefit as your customer needs.

Can I change the Trust once an application is submitted?

Yes, but only up to the point of completing the start date in the application. Once all the mandatory fields for the Trust and the application is fully completed and submitted with a start date, the Trust is enacted and cannot be changed.

Can I include overseas trustees in the online journey?

No, for an online Trust the trustees must be UK residents. However, if oversees trustees are required, we would require a paper deed of appointment of additional trustees to be signed.

Do I have to name beneficiaries in an Online Trust?

It depends which Trust you will be using. Our Flexible Trust allows you to name specific beneficiaries as the default beneficiaries, whereas our Discretionary and RLP Trust provides a list of groups who can benefit from the Trust such as spouse and children.

 

Do I have to detail the amount of benefit for each beneficiary when named?

If you use the flexible Trust, you can select how you would like the benefit to be split amongst your beneficiaries or you can simply declare an equal split across all.

How can I access the Trust form after the policy is live?

You can view a copy of the Trust in your “Document” tab in OLPC Agent Hub. Once the case is archived, this Trust will also be retained in your customer record so can be viewed again when you search for the information.

Does my customer receive a paper copy of the Trust?

Your customer will have access to their secure document hub, My Account. A copy of their Trust will appear here with their other policy documentation.

 

How do the trustees know they have been nominated?

Each trustee is sent a paper copy of the Trust with a covering letter explaining that the life assured has nominated them to be a trustee.

What information do you offer trustees about their responsibilities?

The letter we send to the trustee will include a website address which links directly into our “Guide to being a trustee” document. This provides help and support on information about Trusts and responsibilities of a trustee. We also make copies of this document available in our Trust Hub for you to view.

What happens if one of the trustees doesn’t want to be a trustee?

In the letter we send to the trustee, we have to make them aware that they can decline their appointment as trustee. We suggest they speak to the life assured but if they still want to be removed as a trustee, we provide the Trust Team email address for them to notify us and we retain this on our records.

How do I add trustees to an online Trust?

If the Trust has been enacted and new trustees are required after the policy starts, you can still add trustees by completing our additional trustee form. This will require a wet signature.

Can I change the Trust after the plan has been submitted and started?

Changes can be made to an existing Trust and these should be referred to our Contact Centre as we may require new forms to be completed, depending on the changes required.

03700 10 40 80, Open 8.30am to 5.00pm Monday to Friday. Calls maybe recorded

Does the trustee have to agree to changes to the policy (for example: indexation removal, GIO changes)

Our Online Trusts provisions have been drafted so that only the life assured’s signature is required to carry out most of the options available on the policy (Excluding Relevant Life Plan and Share protection).