Why is the employee included within the class of beneficiary for our Declaration of trust for a Relevant Life policy?
For protection policies only. This information is for intermediaries only. It mustn't be distributed to, or relied on by, customers.20 November 2018
The employee is a beneficiary under the trust, so that in the event of a terminal illness claim, they can potentially receive some or all of the claim proceeds from the trustees. Also if the employee leaves the employment of their employer, the employee may want to have the policy for their own personal use, for example as security for a loan.
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.