information

We use cookies to make sure your experience is as good as it can be. If you’re happy with that, just continue using the site. Learn more about cookies here.

skip to main content

Types of trust

There are many types of legal trusts out there which can be drawn by a lawyer if need be. To save some time, we've also produced some specimen trusts that can be used with our products in mind.

We've provided a brief summary of each of our trust documents, and a quick way to download the deed and guide for each, which covers each in more depth.
You can find these trust documents in our literature library.
Try our Online Trusts tool to help you with the right deed.

What types of specimen trusts do we have?

Flexible Trust

What is it?

A trust which allows the trustees to change the default beneficiaries in the future from a range of potential beneficiaries.

What products can it be used for?

Normally a flexible trust is used for life protection, which will pay out a lump sum when the settlor dies. But your client can use it for other things too, such as an investment bond.

Fixed Trust

What is it?

A trust which a strict instruction to trustees on how to split the proceeds to specific beneficiaries, which can't be changed later.

What products can it be used for?

Normally a fixed trust is used for life protection, which will pay out a lump sum when the settlor dies. But your client can use it for other things too, such as an investment bond.

Split Trust

What is it?

A trust to let you split out the benefits of a Life with Critical Illness policy so that the Critical Illness payment will go to your client, or the death claim will to to the trustees to provide to the specified beneficiaries.

What products can it be used for?

A split trust is only to be used with a combined Life and Critical Illness policy.

Discretionary Trust

What is it?

A trust where the trustees have 'discretion' about how to use the trust's income. This means they can, if circumstances change, be altered by the trustees to make sure it’s still effective.

What products can it be used for?

A discretionary trust is used exclusively with a Relevant Life Cover policy.

Key Person Trust

What is it?

A business trust where claim is paid directly to the company or partners, allowing breathing space to help keep the business trading as normally as possible.

What products can it be used for?

Life Insurance, or Life insurance with critical illness cover set up to cover a key individual in a business.

Share & Partnership Protection Trust

What is it?

A trust trust is used to recover part of the business (either shares or a partnership stake in the business) so the remaining business owners can remain in control. The type of trust depends on the type of business being protected. A cross option agreement gives the surviving business owners the option to buy the deceased owner’s shares, and the estate the option to sell them.

More detail on Share & Partnership Protection trusts

What products can it be used for?

Life Insurance, or Life insurance with critical illness cover set up to cover an individual's shares or partnership in the business.


Image alt text

Literature

Product and trust documentation in one handy place.

Visit the Literature library

Cog

Online Trusts

Find and complete the right trust form completely online.

Launch Online Trusts

Options

Business protection

Guides and resources to get business protection for your clients.

Visit Business Protection

Calculator

Calculators

A range of online tools to help you set up and build your business.

Visit tools & calculators

Connect with us

Vimeo logoLinkedIn company logoTwitter icon showing a bluebird

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