Trusts
Trust Advice for Protection
Placing a policy in trust can give you greater control over who benefits, and depending on the arrangement, may also affect inheritance tax and how your estate is handled. This applies to personal life insurance, and to certain business protection arrangements, including Relevant Life cover and shareholder or partnership protection, though their purpose and structure can differ.
Our Protection advisers can review whether a trust is right for a new or existing policy, and guide you through the arrangement that best suits your circumstances. Placing a policy in trust is a service we provide at no additional cost. For more bespoke structures, such as certain business protection arrangements, we work alongside your wider professional advisers to make sure everything is set up correctly.
Choosing the right trust
Not all trusts work the same way. Here’s how the main types compare.
Discretionary
Your trustees decide which beneficiaries receive benefits, and how, within the terms you set.
Absolute/bare
Named beneficiaries get a fixed entitlement, so there’s more certainty but less flexibility if things change.
Flexible
Combines a named or primary beneficiary with some trustee discretion for others you’d like to include.
The right choice for you depends on your policy, your intended beneficiaries and your personal circumstances. Our Protection advisers will guide you through your options.
FAQs
No, they do different jobs. A protection trust deals with your policy and its proceeds, following the terms you’ve set, while a will covers the rest of your estate. Having a trust doesn’t replace the need for a will.
No, it depends on the type of cover. Life insurance, Relevant Life cover and certain business protection policies can be written in trust. Standalone income protection and critical illness policies are usually designed to pay you directly, so they aren’t normally placed in trust in the same way.
It depends on the type of trust. Some give you flexibility over who ultimately benefits, others give named beneficiaries a fixed entitlement, which is why choosing the right structure at the outset matters.
Your trust won’t usually come to an end. The remaining trustees can normally appoint a replacement, following the terms of the trust. Our Protection advisers can talk you through the next steps, though legal advice may be needed in some circumstances.
Most insurers provide standard trust documentation, and our advisers can help you complete it. You may need a solicitor for more bespoke arrangements, particularly around business protection, in which case we’ll point you in the right direction.
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Speak our Protection advisers
Whether you’re arranging new protection, reviewing an existing policy or thinking about cover for your business, understanding whether a trust is right for you can be an important part of getting your protection working as it should. Our Protection advisers can talk through your circumstances, explain your options and find the right approach with you. Placing a policy in trust carries no additional charge from us.
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My fiancée and I were recommended to LDN Finance when we started our mortgage journey, and the service we have received, and continue to receive, has been outstanding throughout. Phil Levesley initially looked after us and made what can be a very daunting process feel straightforward and easy to understand. He took the time to explain everything clearly, never rushed us, and was always happy to answer any questions we had. Nothing ever felt like too much trouble. As part of the process, we also wanted to explore a number of protection policies, and Phil introduced us to his colleague,
As a returning customer, I would like to express my sincere thanks to the team for their outstanding support during the completion of my property purchase. In particular, Catherine and Darren have been incredibly helpful throughout the process. Their communication, professionalism, and customer service have been absolutely excellent, making the entire experience smooth and reassuring. Many thanks again for all your hard work.
Owen was absolutely amazing and supported me every step of the way throughout the mortgage process. He was always clear, patient, and incredibly reassuring, making what could have been a stressful experience feel smooth and manageable. Bharathy was also really helpful, promptly getting in touch and making sure all the relevant information was handled efficiently. I couldn’t be happier with the service and would highly recommend them both. Five stars without hesitation.
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