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Life Insurance - Trusts

The settlor, you would specify who you want any money to go to (the beneficiary) and who would look after the policy money it if you die (the trustee).


This is the person who sets up the trust and transfers the policy into the trust - normally the person who takes out the life insurance.

Life Insurance in trust?

Consequences of not placing your life insurance in trust could be costly.

It is very important your advisor places your policy in trust where appropriate.

Your advisor will help decide what trust is most suitable for you, we would typically use

  • Discretionary Trust 

  • Survivor’s Discretionary Trust

  • Absolute Trust 

Once your trust is set up, your trustees legally own the policy and must keep the trust deed safe – Lincoln Estate Planning Solutions can keep your Life Insurance, Trust Deed, Will and Estate Planning documents together with the secure storage facility.


‘’Writing life insurance in trust is one of the best ways to protect your family’s future in the event of your death’’.


The benefits of writing life insurance in trust


Control over your assets – if you don’t have a trust, your money might be for other ‘things’. Putting life insurance in trust gives you greater transparency of what the money is to be used for. You can decide who to appoint as your beneficiaries and trustees. Setting up a trust is especially important if you’re not married, separated, divorced or in a civil partnership – we do not want your life insurance paid out to the wrong person.

Faster access to your money – without a trust, when you die your would-be beneficiaries would have to go through probate, which can be a lengthy process. If your advisor has placed your policy into Trust – it could mean your loved ones could receive the pay-out within a couple of weeks of submission of the death certificate.

Protect your beneficiaries from Inheritance Tax – placing a life insurance in trust means the money paid out from your policy should not form part of your estate – not in all scenarios.

For further information, please contact us.

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