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...

To continue reading this article...

Join COVER for free

  • Unlimited access to real-time news, key trend analysis and industry insights.
  • Stay on top of the latest developments around health and wellbeing, diversity and inclusion and the cost of living crisis.
  • Receive breaking news stories straight to your inbox in the daily newsletter.
  • Members only access to monthly programme 'The COVER Review'
  • Be the first to hear about our CPD accredited events and awards programmes.

Join now

 

Already a Cover member?

Login

More on Regulation

IPT collects £1.26bn in February 2026

IPT collects £1.26bn in February 2026

£8.95bn collected in 25/26

Cameron Roberts
clock 20 March 2026 • 1 min read
IHT receipts hit £7.7bn with record year expected

IHT receipts hit £7.7bn with record year expected

Up £100m from the same period the prior year

Jen Frost
clock 20 March 2026 • 3 min read
Stuck in the regulatory crossfire

Stuck in the regulatory crossfire

"Distributors remain the meat in the sandwich"

Tony Müdd
clock 19 March 2026 • 2 min read