Who is the settlor of the Declaration of trust for a Relevant Life policy?
For protection policies only. This information is for financial advisers only. It mustn't be distributed to, or relied on by, customers.11 December 2017 Back to results
The employer will generally be the initial settlor of the trust, when they take out a Relevant Life policy on an employee, place the policy in trust and make the policy payments.
If the employee leaves the employer who is paying for the Relevant Life policy, the trustees will need to complete a Deed of Removal of Beneficiary. This will remove the employee as a beneficiary of the trust, and help to protect its inheritance tax (IHT) benefits.
Find out more about the options available when an employee leaves the employer who is funding their policy.
This information is based on our understanding of current taxation law and HM Revenue & Customs (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 isn't 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 clients' requirements. Our trusts have been drafted for use by UK domiciled individuals.