Who is the settlor of the declaration of trust for a relevant life policy?
For protection policies onlyTue Feb 14 13:06:00 GMT 2017 Back to results
As the employer applies for a relevant life policy on the life of the employee and places this in trust, the employer will generally be the initial settlor of the trust.
If the employee leaves the employment of their employer and they then wish to take over the payment of the premiums personally the employee will also be a settlor of the trust and will have to be removed as a beneficiary to protect the IHT benefits of the trust.
This information is based on our understanding of current, taxation law and HMRC practice, which may change.
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.