information

We use cookies to give you the best possible experience online. By continuing to use our website, you agree to receiving our cookies on your web browser. Visit our cookie policy page to find out more and how to change your cookie settings.

skip to main content

Find out about the trusts we offer and how to use them

Trusts

Survivorship Clause

A survivorship clause allows a surviving settlor to get the proceeds of a trust if they survive 30 days from the death of the first settlor to die. If both settlors die within 30 days of each other, then the trust property reverts to the beneficiaries.

For example, if your clients are married with children, they could make sure the proceeds of their protection policy would go to:

  • Their children if they die within 30 days of each other
  • to the surviving spouse if one of them survives the other by 30 days

This means the trust can be flexible enough to provide the money where it needs to, by supporting the family at a difficult time, or provide for the children without being part of their estate for Inheritance Tax purposes.

To include the survivorship clause, your client will need to 'opt in' when filling in the trust deed. This is explained in the guidance notes for the trust deeds.

Right now the survivorship clause isn’t available using our Trustbuilder. So if you want to include this, please download or ask us for a copy of our trust deeds and guidance notes.

Common Questions

When can my client use it?

The survivorship clause is intended for use only in specific circumstances:

  • two plan or policy owners (we call this joint settlors when we’re talking about the trust)
    and either
  • a joint first death life insurance policy, or
  • a single life insurance policy (under our Flexible Protection Plan only).

You shouldn't include a survivorship clause for any of the following:

  • Single settlor trusts (whether the cover is single life or joint life)
  • Savings plans
  • Investment bonds

Please remember that you can use our trusts with or without the optional survivorship clause.

Can my client add the clause at a later date?

No. If your client wants to include the survivorship clause in their trust they must add it when the trust is created. You can’t add this later on. If it is included by mistake, it can’t be removed. Please consider this option carefully.

Which trust forms have the clause?

The following trust forms have the survivorship clause opt in:

Trust deeds and guides

Speak to our adviser support team for quotes or more information.

0800 678 1890

TextDirect 18001 0800 678 1890

9am - 5.30pm Monday - Friday

We may record and/or monitor calls for training and audit purposes.

Literature

Calendar icon

IHT planning

Manage your client's inheritance tax by using our trusts.

Find out more about inheritance tax

Chart icon

Protection toolkit

Let us support your advice with our handy online tools.

Find out more about our Protection Toolkit

Heart icon

Working with LV=

What you can expect when you work with us.

Find out more about Working with LV=

Team icon

Business Protection Specialist Team

Fast track application with our Business Protection Specialist team.

Meet the Business Protection Specialist team

FOR UK FINANCIAL ADVISERS ONLY
LV=, County Gates, Bournemouth, BH1 2NF, UK