The FPIL Beneficiary Trust allows an individual to nominate beneficiaries to receive the proceeds of their policy after death via a trust.
Issues for consideration
- The Beneficiary Trust does not come into force until the death of the last surviving policy holder.
- A Beneficiary Trust can be revoked/cancelled at any time during the lifetime of the policy holder.
- Submitting a new Beneficiary Trust will revoke/cancel the current the Beneficiary Trust.
- A Deed of Assignment will revoke/cancel any Beneficiary Trust.
- It not possible to use the Beneficiary Trust where the policy is owned by a company or trust..
- A company or trust can be appointed as a Trustee or Beneficiary.
- The Beneficiary Trust cannot be used where the policy is written on a joint life first death basis.
- The Beneficiary Trust avoids the requirement for obtaining Isle of Man Probate.