Flexible Split Survivorship Trust
Our Flexible Split Survivorship Trust is only suitable for joint life first death policies where the intention is for the surviving joint owner to benefit from the sum assured payable on first death. As it is a split trust the policy holder can receive benefits from a critical illness or a terminal illness claim. It works the same way as a regular split trust except, that payment of death benefit will be made to the surviving joint owner if he/ she survives the first joint owner to die by 30 days.
Key benefits
- Decisions about who will benefit can be changed
- A client can keep the right to receive critical illness or terminal illness benefits, whilst ensuring the benefits payable on their death are dealt with efficiently.
- Speed of payment.
Other information you need
-
Flexible Split Survivorship Trust may be suitable for clients:
- Who hold/are applying for a joint life, first death policy which includes critical illness/terminal illness cover.
- Who, if they become ill, wish any critical illness or terminal illness cover to be paid for their own benefit.
- Who wish the surviving joint owner to receive the death benefit on the first death, but also wish for it to bypass the survivor and be held on discretionary trust if the survivor does not survive for 30 days , thereby avoiding it passing through his/her estate.
- Who want to avoid any delay in paying out the proceeds of their policy which may otherwise occur where probate (or confirmation) is required before payment could be made.
- Who understand that this trust may not be IHT efficient because the policy may be treated as remaining in the settlors’ estates for IHT purposes (subject to the spouse exemption)
-
- For clients who wish the surviving joint owner to receive the death benefit on the first death, but also wish for it to bypass the survivor and be held on discretionary trust if the survivor does not survive for 30 days (thereby avoiding it passing through his/her estate).
- If you wish the appointed trustees to have overall discretionary powers to decide who will receive payment of death benefit if the survivor dies within 30 days (with the settlors having the flexibility to nominate default beneficiaries).
-
- If you have decided that a Flexible Split Survivorship Trust is suitable for your client, please complete our e-signature trust form. OR
- If you prefer to use our editable PDF form, please send us the completed and signed trust documentation as soon as possible. This means that you can complete the form and email it to your client for them to print and sign.
Completed 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
PO Box 24171
69 Morrison Street
Edinburgh
EH3 1 HRPlease note: We cannot treat a benefit as being under trust until we have received the trust documentation fully completed and signed.
Important considerations
Trusts are documents with legal significance that may affect the rights, obligations and tax position of your client and the beneficiaries. You should not proceed unless you are satisfied that you understand its effect and that it achieves your objectives. If you have any doubts or uncertainties you should seek the appropriate legal guidance.
We cannot treat a benefit as being under trust until we have received the trust documentation fully completed and signed.