Aegon UK launches new discretionary trust form

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  • Aegon reveals that only around one in five of its protection policies are currently held in trust

Aegon UK has launched a new discretionary trust form to make it quicker and easier for advisers and their clients to place Personal Protection and Whole of Life policies in trust.

The new discretionary trust form can be signed electronically by all settlors and trustees typing their names instead of having to sign using a ballpoint pen.

Aegon has streamlined the process to create its discretionary trust, both at initial set-up stage with a clients’ protection application and if assigning an existing policy into trust. It’s a split trust which means only life protection and terminal illness benefits will be held in trust for the clients’ beneficiaries. This lets clients retain access to claim proceeds for benefits such as critical illness cover, income protection and any associated benefits.

If a joint-life first death policy is placed into the discretionary trust, a survivorship clause will automatically apply. This means any claim proceeds payable after one insured person dies will be paid for the benefit of the surviving insured person, as long as they survive for 30 days.

Aegon has created a new guide for advisers to use with their clients to help explain its new discretionary trust and the process for setting one up.

Stephen Crosbie, Protection Director at Aegon comments:

“Only around one in five of our protection policies are currently held in trust, so we know that many people could be missing out on the valuable benefits that trusts bring.

“Avoiding the need for a Grant of Probate to speed up payment of a claim and the associated IHT savings are two benefits of having a policy written in trust.

“With the rise in remote working, our new discretionary trust lets advisers and their clients complete a trust electronically, without the hassle of wet signatures, to provide peace of mind that their policy will pay the right people at the right time.”

 

Further information

Stephanie Melrose

PR Manager

Aegon UK

stephanie.melrose@aegon.co.uk

Mob: 07740897621

 

Notes to Editors

  • In the UK, Aegon offers retirement, workplace savings and protection solutions to over three million customers. Aegon employs around 2000 people in the UK and together with a further 800 people employed by Atos, we serve the needs of our customers. More information: www.aegon.co.uk
  • Aegon’s roots go back more than 175 years – to the first half of the nineteenth century. Since then, Aegon has grown into an international company, with businesses in the Americas, Europe and Asia. Today, Aegon is one of the world’s leading financial services organisations, providing life insurance, pensions and asset management. Aegon’s purpose is to help people achieve a lifetime of financial security. More information on www.aegon.com
  • Figures correct as of January 2021