How is a business protection arrangement using business trusts structured?

For protection policies only

The business owners would sign an option agreement – a single option agreement will commonly be used with critical illness cover and a double option agreement with life cover. Under the terms of the option agreement, each of the business owners will take out an own life policy and place this in trust for the benefit of the other business owners.

Trusts establish legal rights and entitlements and might have material financial and tax implications for the Settlor, Trustees and Beneficiaries. Aegon UK is not authorised to provide legal advice, so you should take your own legal advice before setting up a trust, to make sure that it meets your requirements. Our trusts have been drafted for use by UK domiciled individuals.