Life insurance is designed to provide financial support to the people you care about if you die.
Writing a life insurance policy in trust is often recommended because it helps make sure the money is paid to the right people, quickly, and with fewer complications.

✔ Helps your loved ones receive the money sooner
✔ Helps ensure the payout goes to the people you choose
✔ Often avoids unnecessary delays and complications

Why life insurance is written in trust

If a life insurance policy is not written in trust, the payout usually becomes part of your estate when you die. This can mean delays while legal processes such as probate are completed.

When a policy is written in trust, the insurer can usually pay the money directly to the beneficiaries named in the trust. This can make a significant difference at a time when families may need access to funds quickly to cover everyday costs, mortgage payments, or other financial commitments.

What does “written in trust” mean?

Writing a policy in trust means that the policy is legally held by trustees on behalf of the people you want to benefit from it.

When a claim is made, the insurer pays the money to the trustees, who are responsible for passing it on to the beneficiaries in line with the terms of the trust. This helps remove uncertainty and ensures the money is used as intended.

In most cases, you can act as one of the trustees yourself.

The main benefits of writing life insurance in trust:

Faster payment

Policies written in trust can often be paid without waiting for probate, meaning your loved ones may receive the money much sooner.

Clarity and certainty

A trust helps ensure the payout goes to the people you intend, reducing the risk of confusion or disputes.

Inheritance tax considerations

In many cases, a life insurance policy written in trust does not form part of your estate for inheritance tax purposes, which may help preserve more of the payout for your beneficiaries.

Do I lose control of my policy?

In most cases, no.
You can usually be one of the trustees and many trusts allow flexibility to update beneficiaries if your circumstances change in the future.

We will always explain how a trust works and what level of control you retain before anything is put in place.

Is writing a policy in trust compulsory?

No. Writing life insurance in trust is not compulsory and may not be suitable for everyone.

However, it is commonly recommended because of the practical benefits it can provide. We’ll explain the options clearly so you fully understand.