Life policies in trust: Why new govt rules are adding complexity

clock • 6 min read

The obscure new beneficiary registration trap for life policy trusts adds yet another layer of complexity, writes Ruth Gilbert

  The old lack of trusts chestnut In theory, trusts are a great solution to ensuring life cover claims aren't held up in probate on single life cases. For a few, they can also avoid the taxman taking a slice of inheritance tax off the proceeds. But in practice, it's just too hard a sell to get them done. We already know customers find trusts too confusing. The same can be said for insurer administration and marketing teams and not a few financial advisers. So it's not surprising that the uptake of life policy trusts remains stubbornly low and appointment of trustees is even ...

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 Individual Protection

AI expected to reduce workforce for large private sector firms

AI expected to reduce workforce for large private sector firms

CIPD research findings

Patrick Brusnahan
clock 10 November 2025 • 2 min read
Two in five men unaware of cancer risk

Two in five men unaware of cancer risk

Bupa research findings

Jaskeet Briah
clock 07 November 2025 • 2 min read
One in five adults abandon the protection journey: AMI

One in five adults abandon the protection journey: AMI

47% abandoned the process after receiving a quote

Jaskeet Briah
clock 05 November 2025 • 3 min read