When it comes to life cover, putting a policy in trust can be just as important as recommending the right product. It’s a powerful tool to help clients protect their loved ones — ensuring money goes where it’s meant to, quickly and tax-efficiently. But trust-related admin has traditionally added friction to an otherwise streamlined advice journey.
That’s why we’re introducing a new update on the Protection Platform: advisers can now access links to insurer trust forms directly on Protection Platform for five participating insurers: HSBC, LV=, Royal London, SWIDS, and Vitality.
Here’s what you need to know:
The links are located within the Product Details section on the Platform, pre and post submission
Royal London, LV=, and SWIDS support fully digital trust setup via their extranets, whereas HSBC and Vitality offer digital submission by email
We’ve created a handy Trust Forms FAQ & User Guide with links and step-by-step instructions to support you.
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Why trusts matter
A trust is a legal arrangement that allows the proceeds from a life insurance policy to be paid directly to named beneficiaries — without forming part of the policyholder’s estate. This means the payout can avoid probate delays, potentially reduce inheritance tax liability, and be distributed in line with the policyholder’s wishes.
When a policy is written in trust:
The insurer pays the claim to the trustees (not the estate), enabling faster access to funds
It can help keep the proceeds outside the taxable estate
The policyholder retains control over who benefits from the payout, often with more precision than a will alone
The funds can be protected from certain risks, such as divorce or creditors, depending on how the trust is set up
Potential downsides to opting for a Trust
While putting a life insurance policy in trust offers clear advantages, it's not the right option for everyone. Advisers should help clients weigh up the potential trade-offs:
It’s (mostly) irreversible. Once a policy is written in trust, it’s considered a legal transfer of ownership — the client typically can’t pull it back or change their mind. That’s why it’s important the trust structure and beneficiaries are clearly thought through from the start.
Control shifts to the trustees. Once in trust, decisions about the policy — such as who benefits and when — must be made or approved by the appointed trustees. The policyholder can no longer act unilaterally.
Complexity in setup and admin. While trusts can provide long-term clarity, the initial setup can feel more complex for clients. Trustees must be chosen carefully, and advisers may need to support clients in understanding their obligations.
Why it matters for advisers
For advisers, positioning trusts is about helping clients achieve the outcome they actually intended — not just buying a product, but making sure it works for the people it’s meant to protect. This means ensuring clients are fully informed about both the benefits and the limitations of using a trust — helping them make a decision that aligns with their goals, circumstances, and comfort level.
Writing a policy in trust can materially improve client outcomes — faster payouts, lower tax exposure, and clearer control
It shows deeper value beyond product recommendation — positioning the adviser as a holistic problem-solver
It strengthens adviser-client relationships by addressing what matters most to families in moments of loss
Trusts vs. Beneficiary Nominations — What’s the difference?
While both trusts and beneficiary nominations aim to direct who receives a policy’s payout, they work very differently — and it’s important advisers help clients choose the right approach.
A trust is a legally binding arrangement. It moves the policy outside the estate, helps avoid probate delays, and can reduce inheritance tax. Trustees control the payout on behalf of named beneficiaries, offering more certainty and protection.
A beneficiary nomination is a non-binding expression of intent. It doesn’t guarantee who receives the money, usually doesn’t avoid probate, and won’t reduce IHT liability. It’s simpler and more flexible — but far less robust.
When to use which?
Use a trust when speed, control, and tax efficiency matter — especially for individual policies.
Use a nomination where offered (e.g. pensions or group life) when simplicity or flexibility is preferred, and estate planning isn’t a major concern.
A step toward a smoother journey
Let’s face it: the trust process still adds unnecessary steps for advisers. Finding the right form, knowing where to send it, and managing signatures all take time.
With this update, we’re but we’re making progress towards building a fully digital trust solution in partnership with insurers. This change reduces friction, saves time, and ensures more clients get the full benefit of their cover.