Important information if your life insurance policy is in trust

The importance of having more than one trustee

When putting your life insurance policy in trust it’s important to appoint more than just yourself as a trustee so that payments to the intended beneficiaries aren’t delayed. Check to make sure you’re not the only named trustee, if you’re not sure if you’ve already appointed additional trustees, you can call us and we’ll let you know. Call 0800 032 0947 for ‘Protection For Life’ policies, or 0345 030 6240 for ‘Scottish Widows Protect’ policies.

Why does there need to be more than one trustee?

It’s essential that where your policy is set up in trust you appoint additional trustees:

  • this ensures payments to beneficiaries aren’t delayed and your estate doesn’t incur additional costs.
  • there needs to be a surviving trustee, if a claim is made, to administer the terms of the trust and make sure your appointed beneficiaries receive prompt payment.

If, as the policy owner, you’re the only appointed trustee and don’t do anything to change this and a claim is made on your policy, a personal representative would need to be appointed before funds could be released - which means:

  • payments to beneficiaries could be delayed and there may be a cost to your estate of making this appointment.

What to do if you are the only trustee

It’s really easy to appoint an additional trustee if you’re the only trustee, all you need to do is:

  1. Appoint someone you know you can rely on as an additional trustee to make sure that they could act on your behalf,
  2. Download and complete the Deed of Appointment of additional trustees form. This sets out the duties and responsibilities of any appointed trustees. To help you complete this form it comes with useful notes explaining what’s required.
  3. Return the completed signed forms to us by post to: Scottish Widows, PO Box 902, 15 Dalkeith Road, Edinburgh, EH16 5BU

Once you’ve appointed an additional trustee(s) they will be entitled to receive policy information, like missed premium reminder letters. If there are any changes to the trust, such as change of beneficiaries or trustees, we’ll require their signatures to make the change. Also if you wanted to cancel the policy we’d need signatures from all the trustee(s) as policy owners.

Helpful information

If you’ve any further questions you can send us a query or call us directly on the numbers above.