With your Relevant Life trust, why is the list of potential beneficiaries restricted?
For protection policies only. This information is for financial advisers only. It mustn't be distributed to, or relied on by, customers.Wed Oct 16 11:28:00 GST 2019
Our Relevant Life trust is a discretionary trust, allowing the trustees to pay any claim proceeds to anyone within the discretionary class (as defined in Part 1.7 of our Relevant Life signature-free trust terms and powers(Opens new window) and Part 3.7 of our Declaration of trust for a Relevant Life policy(Opens new window)).
As one of the benefits of a relevant life policy is the exemption from the benefit in kind charge under section 307 of the Income Tax (Earnings and Pensions) Act 2003, we've restricted the list of potential beneficiaries to help make sure that this exemption applies.
This information is based on our understanding of current taxation law and HM Revenue & Customs (HMRC) practice, which may change.
Trusts establish legal rights, obligations and entitlements and might have material financial and tax implications for the settlor, trustees and beneficiaries. Aegon UK isn't authorised to provide legal or tax advice, so you should take your own legal and tax advice before setting up a trust, to make sure that it meets your clients' requirements. Our trusts have been drafted for use by UK-resident and UK domiciled individuals.