Relevant life policy trust
Our Relevant Life Policy Trust is specially designed for use with Relevant Life policies. Relevant Life Policy 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. This is a discretionary trust although your client may wish to name specific beneficiaries by completing a Letter of Wish form.
Key benefits
- Tax efficient.
- Speed of payment.
Other information you need
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You should consider a Relevant Life Policy Trust if your client is an employer and they wish to:
- Provide one or more employees with tax-efficient benefits in the event of death or terminal illness whilst in service, without having to set up a group arrangement.
- Secure the possibility of tax relief on the premium payments.
- Ensure that the policy proceeds are available to the employee and/or his or her family without the delays that might otherwise arise if probate were required before payment could be made.
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- The death benefit (including terminal illness benefit) will not form part of the employee’s lifetime allowance for pension purposes.
- Premiums paid by the employer will not be treated as a benefit in kind for the life assured/employee.
- The premiums paid will also not form part of (and so will not reduce) the employee’s annual allowance for pension purposes.
- Premiums will not be assessable on the employer or employee for National Insurance contribution purposes.
- The benefits under the policy will be paid free of income tax.
- The death benefit will generally be paid free of inheritance tax and won’t form part of the employee’s estate for inheritance tax purposes.
- Premiums paid by the employer will be treated as a business expense for tax purposes if they satisfy the ‘wholly and exclusively’ test.
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- If you have decided that a Relevant Life Policy 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.