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Beneficiary Trust

Suitable for policyholders who are non-UK domiciled and who require the policy’s benefits to go to named beneficiaries in the event of death.

Whilst there is nothing to prevent UK domiciled policyholders from also using the trust, it is important to understand that there would be no IHT planning advantages in doing so.

The Beneficiary Trust only comes into effect on the death of the ‘Relevant Person’. The ‘Relevant Person’ is the person on whose death the benefits of the policy become payable.

The trust will be of particular interest to those individuals who want the policy to remain in their own name during their lifetime but would like the policy to pass into trust after their death. This will mean that, assuming at least one of the nominated trustees is still alive on the death of the last surviving policyholder, the costs and delays associated with obtaining Manx Probate would be avoided.

General features of the trust

  • the trust can have up to two policy owners
  • the trust can be used for existing bonds
  • the trust can accept top-ups.

The Beneficiary Trust may be suitable
for non-UK domiciled individuals who

  • wish for their policy to remain in their own name during their lifetime
  • wish to ensure that their policy passes to a nominated beneficiary upon death.

Important notes

Please note that every care has been taken to ensure that the information provided is correct and in accordance with our current understanding of the law and practice at Her Majesty's Revenue and Customs (HMRC) as at August 2012. You should note however, that we cannot take on the role of an individual taxation adviser and independent confirmation should be obtained before acting or refraining from acting upon the information given. The law and HMRC practice are subject to change. Legislation varies from country to country and the policyholder's country of residence may impact on any of the above.