Proposed new govt rules 'threaten last nail in coffin' for life policy trusts

Consultation ends Monday

clock • 4 min read

Onerous registration rules would take dealing with trusts from complex to almost impossible, writes Ruth Gilbert

In 2017, an obscure beneficiary registration trap was brought in for life policy trusts. It's pointless, complex and best ignored, which is what life companies and advisers have sensibly done. After all, the much more important thing to do is to ensure life cover reaches the intended loved one. Especially with the growing numbers of unmarried couples risking total loss of the cover meant for them. But now it looks like trust registration for life policies can't be ignored. Even worse, it threatens to kill off nearly all use of trusts for new business and place the industry in an impossib...

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