The paperwork that pays out faster

Putting cover in trust

Write your life insurance in trust, and the payout goes straight to the people you choose, usually faster and usually outside your estate.

Plain English, and nobody will try to sell you anything.

The usual kinds of trust for a policy.

Your insurer’s forms will offer a choice. These are the common ones; names differ between insurers.

Discretionary trust
Your trustees decide who gets what, from people you’ve named.
Suits: Flexibility, if life changes
Talk to us
Absolute trust
Fixed beneficiaries, who can’t be changed later.
Suits: Certainty about who gets it
Talk to us
Flexible trust
Default beneficiaries, with power to change them.
Talk to us

A faster payout. The trustees usually claim with a death certificate, without waiting for probate.
Usually no Inheritance Tax on it. The payout is usually kept outside your estate, so it doesn’t add to any Inheritance Tax bill.
It goes where you want. The money goes to the people you name, not wherever your will or the law sends it.
Usually free to set up. Most insurers give you the trust forms free, and we’ll help you fill them in.

Best done when you take the policy out. It can usually be done later too.

Choose the beneficiaries.
The people you want the money to go to, such as your partner or children.
Step 1
Choose your trustees.
People you trust to claim and share out the money. You can usually be one too, alongside at least one other.
Step 2
Sign the insurer’s trust form.
You, the trustees and a witness sign it, and the insurer keeps it with the policy.
Step 3

Short answers about life insurance in trust.

Does a trust cost anything?
For a life insurance policy, most insurers provide the trust forms free. More complicated trusts, set up by a solicitor, cost more.
Can I change my mind later?
It depends on the trust. Some let you change the beneficiaries; some can’t be undone. Check before you sign.
Can I put an existing policy in trust?
Usually, yes. Ask your insurer for their trust form. We’ll help if you arranged the policy through us.
What about a joint policy?
Joint policies can often go in trust too, but the options depend on the insurer. We’ll check for you.
Is a trust the same as my will?
No. A policy in trust is paid out under the trust, not your will. Keep both, and make sure they fit together.
Do I need a solicitor?
Not for a standard trust on a life policy. For trusts in a will, or anything involving a business or complex family, a solicitor is best.

Getting cover

Don’t have a policy yet? See life insurance, and we’ll help with the trust when you apply.

What the words mean

Trustee, beneficiary, settlor: see our glossary.

Trusts and tax

Trusts have their own tax rules, and some must be registered with HMRC. See gov.uk/trusts-taxes, or ask a solicitor.

Ask a real person about putting your policy in trust. There’s no fee from us.

Monday–Thursday 9am–7pm, Friday 9am–3pm