Why is the list of beneficiaries under the Declaration of trust for a Relevant Life policy so restricted?
For protection policies only. This information is for financial advisers only. It mustn't be distributed to, or relied on by, customers.18 December 2017
We've restricted the list of beneficiaries under this trust to help make sure that the exemption from the benefit in kind charge under S307 ITEPA 2003 applies. The exemption from this income tax charge is one of the benefits of a relevant life 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.