Business Trust

For Protection

Our Business Trust is specially designed for new ‘own life, single life’ term assurance policies taken out for business protection. Business Trusts should be established at policy outset and must be signed and dated on or before the start date of the policy for it to be valid.

Key benefits

  • Allows the remaining shareholding directors/partners to retain control.
  • Flexibility to deal with changes in business structure.

Download the Business Trust form

Download the form and email it to your client for their signature.

Business Trust (PDF)

Key documents

Business Trust (PDF)

Your business options agreement draft (PDF)

Trust Overview Guide (PDF)

See all our trust documents in one place, including forms, guides and brochures.

View all product literature

Other information you need

  • A Business Trust can be used if your clients are applying for life cover and/or critical illness cover for the purpose of protecting their business partners or fellow shareholders, should they die or suffer a specified critical illness. All the business partners or fellow shareholders should enter into these arrangements.

    It is suitable only where the business owners:

    • are each effecting new policies on their own lives to be held in the trust; and
    • have entered or are about to enter into an option agreement or other arrangement in relation to their business interests. Scottish Widows can offer a draft option agreement (PDF) for your clients’ legal adviser to base their agreement on, if they wish.
    • Should your client(s) die or suffer a critical illness the policy proceeds will be paid to the trustees and can provide a lump sum to enable the partners, or fellow shareholders, to purchase the absent individual’s interest in the partnership, or their shares in the company, and carry on the business.
    • If all the other partners or fellow shareholders put similar arrangements in place, there should always be funds available to help to purchase the interest of a partner or shareholder who dies or suffers a critical illness. An appropriate Option Agreement can help to ensure this happens.
    • Provided a minimum of two Additional Trustees have been appointed the policy proceeds will be paid directly to the Additional Trustees without the need for Probate.
  • If you have decided that a Business Trust (PDF) is suitable for your client please send us the completed and signed trust documentation as soon as possible. We cannot treat a benefit as being under trust until we have received the relevant documentation.

    For business trusts the forms should be signed and dated on or before the start date of the policy. If it is not correctly completed we may not be able to accept the application.

    Our trust forms are editable PDFs. This means that you can complete them online and email to your client for them to print and sign.

    Completed, signed and dated, trust forms can be sent to us either by email (a scanned copy or even send a photo) or by post.

    Please remember to include the relevant plan number and ensure that the form has been signed and dated.

    Email: Protect@scottishwidows.co.uk
    Address:

    Scottish Widows Protect Servicing Team
    15 Dalkeith Road
    Edinburgh
    EH16 5BU.

What would you like to do next?

Download our application

Once you’ve filled it in, and added your client’s signature email it to Protect@scottishwidows.co.uk

Business Trust form (PDF)

Have a look at our cover options

See our protection options that can be written under Business Trust.

See our cover options

Learn more about trusts

See how trusts can work better for your clients.

What trusts can do for you