LIFE POLICY TRUST

You may want to...

Complete a Letter of Wis hes .
This lets your Trus tees know how you wa nt to
dis tribute the benefits from your policy. Find out
So far you have completed... more on:
https ://www.budgetins ura nce.com/life-ins ura nce/
Setting up your policy
You ca n ca ll us to obta in a Letter of Wis hes form to
complete.
Filled a nd printed your Trus t Document
Store your origina l Trus t Deed s a fely with your policy
documents .
You ma y wa nt to let your Trus tees know where thes e
documents a re s tored, s o they could find them if
needed.
What happens next? Crea te a will.
Before you continue ma ke s ure tha t this document is executed This ens ures tha t the right people ta ke the money if
correctly s o it could be a va lid Trus t. you die. To crea te a will vis it:
https ://www.budgetins ura nce.com/life-ins ura nce/

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Need our help?

You sign the trust document Ca ll our UK ca ll centre free

Your need to s ign where indica ted a nd be 0330 0188 806
witnes s ed by a n independent witnes s who Mon - Fri 8a m - 8pm,
mus t a ls o s ign.
2 Sa t 9a m - 5pm,
Sun Clos ed

Trustees sign the trust document

Your Trus tees a ll need to s ign where
indica ted a nd be witnes s ed by a n
independent witnes s who mus t a ls o s ign.
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Date the trust document

Once everyone ha s s igned, the document
s hould be da ted a t the top of pa ge one.
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Send us a copy of the trust

You will need to inform Budget Ins ura nce
tha t you ha ve put your policy in to Trus t by
one of the following methods ...

Post Email
Budget Ins ura nce Sca n your Trus t document
Fus ion Hous e a nd ema il it to us
Ka tha rine Wa y
Bretton life@budgetins ura nce.com
Peterborough
PE3 8BG

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 LIFE POLICY TRUST

TRUST SUMMARY
POLICYHOLDER

Steven Murphy
Policy number: 134831164

Your money is pa s s ed to your

Trus tees to pa s s on to your Beneficia ries

TRUSTEES

David Murphy

Claire Morrison

Your Trus tees then pa s s on the

money to the Beneficia ries

BENEFICIARIES

David Murphy

Claire Morrison

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 LIFE POLICY TRUST

What is this for and how does it work? Is it suitable for me? Guidance notes...
The a im of this Life Policy Trus t is to ens ure the If you a re uns ure, you s hould ta ke s pecia lis t
Please be aware that these notes are intended for
proceeds pa ya ble from your Life Policy on your independent ta x a nd lega l a dvice on your s pecific
dea th a re outs ide your es ta te for inherita nce ta x circums ta nces a s to whether this Trus t is effective general guidance only and should not be relied
purpos es . a nd a ppropria te for you. upon in the place of specialist legal and tax advice.
On your dea th, the Dea th Benefits will be pa id to The Trus t is intended for us e where there is one
your Trus tees who will dis tribute them to your Policyholder with a Budget Ins ura nce Policy (or
chos en Beneficia ries . Policies ). It is not s uita ble for joint Policyholders .

SECTION 1 Why do I need additional Trustees and who should I

choose?
This Life Policy Trust is made on1
You will be one of the Trustees. However, because
DAY MONTH YEAR the Death Benefits are payable on your death, it is
Between the Policyholder... necessary to appoint up to four additional Trustees
who will still be living and be able to distribute the
Steven Murphy Death Benefits.
Flat 0/2 229 Killearn Street, Possilpark, Glasgow, Lanarkshire, G22 5JB You should choose people you trust as they will be
responsible for receiving the Death Benefits and
murp45y@gmail.com distributing them to your chosen Beneficiaries.
Your additional Trustees can also be Beneficiaries.
and
For example, your spouse could be a Beneficiary
The Trustee... and a Trustee.
The minimum age for a Trustee is 18.
David Murphy
8 Woodfoot Quadrant , Glasgow, G53 7JP
1. date on which last signatory signs this deed
davyboymurphy@googlemail.com 2. Trustees includes any Trustees appointed to act in
the future
The Trustee...

Claire Morrison
Flat 0/2 15 Don Street , Glasgow, G33 2DL
claireajtm01@gmail.com
(together with the Policyholder, the Trustees2 )

SECTION 2 ASSIGNMENT OF POLICY What does “Assignment of Policy” mean?

The Policyholder hereby assigns the following Policy (the Policy) to the Trustees. Currently your life is insured and you own the
Policy.
Assignment means that you give the Policy to your
Policy Number Life As s ura nce Compa ny
Trustees so that they legally own the Policy, but it is
134831164 Scottish Friendly Assurance Society still your life that is insured.
You will need to inform Budget Insurance that you
have assigned the Policy to a third party.

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 LIFE POLICY TRUST

SECTION 3 DECLARATION OF TRUSTS What does "Declaration of Trusts" mean?

The declaration of trust in this section sets out what
The Trustees are to hold the death benefits of the Policy, and the money, investments and property from
the Trustees can do with the Death Benefits when
time to time representing those benefits (the Death Benefits), on such Trusts as the Trustees shall appoint
they receive them. Whilst it may not be obvious
for the benefit of the following Beneficiaries (together the Beneficiaries) during the Trust Period3 : from the wording, this section allows the Trustees
to decide when to pay these benefits out and the
Beneficiary
amount which a beneficiary receives.
David Murphy For example, the Trustees could decide to pay all of
the benefits to one of the Beneficiaries immediately
8 Woodfoot Quadrant, Glasgow , G53 7JP or to pay them to a number of Beneficiaries on, say,
their 21 st birthdays.
You should therefore ensure that your other Trustee
understands what your intentions are and, ideally,
Beneficiary
write a letter to the Trustee giving written evidence
Claire Morrison of this.
You can call us to obtain a Letter of Wishes form to
Flat 0/2 15 Don Street , Glasgow, G33 2DL complete.

Additional Beneficiaries Who should I choose to benefit?

The Policyholder may also nominate any person (other than the Policyholder and the Policyholder's
Generally people choose their surviving spouse,
personal representatives, in their capacity as such) by notice in writing addressed to the Trustees provided
children, grandchildren and remoter descendents.
that notice is received by the Trustees not later than one month after the death of the Policyholder.
However you can include anyone else that you
would like to benefit from your Death Benefits after
your death.
If you wish to add Beneficiaries at a later date you
can do this by informing your Trustees in writing.
If you require a form with more Beneficiaries please
contact us.

3. The Trust Period means the period ending on the

last day of the period of 125 years from the date
of this Deed
4. The expression "surviving partner" does not
extend to a former spouse or civil partner or to an
unmarried partner (whether or not they are
cohabiting with you). If you want any person in
these categories to benefit, you will need to add
their details separately.
5. References to children, grandchildren and great-
grandchildren do not include step-children

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 LIFE POLICY TRUST

SECTION 4 POLICYHOLDER NOT TO BENEFIT Why can't I benefit?

If the Death Benefits of the Policy are to be outside
The Trustees shall not in any circumstances use their powers under Section 3 for the benefit of the
your estate for inheritance tax purposes you cannot
Policyholder or, during the Policyholder’s lifetime, the Policyholder’s spouse or civil partner.
benefit from it (apart from non Death Benefits, see
note below).
Likewise, your spouse can only benefit after your
death.

SECTION 5 TRUSTS OF CRITICAL ILLNESS OR TERMINAL ILLNESS BENEFITS What happens if the Policy pays out before my
death?
The Trustees shall hold any Critical Illness or Terminal Illness benefits payable under the Policy (whether
If any benefits under your Policy become payable in
the benefits relate to the Critical Illness or Terminal Illness of the Policyholder or dependant of the
your lifetime (such as Critical Illness or Terminal
Policyholder) upon Trust for the Policyholder absolutely. Illness benefits) they will be paid direct to you.

SECTION 6 ADMINISTRATIVE PROVISIONS Where can I find the Administrative Provisions?

Most Trusts have administrative provisions
The Trustees are to hold the Death Benefits of the Policy, and the money, The Standard Provisions of the
incorporated which make it easier for Trustees to
Society of Trust & Estate Practitioners (2nd Edition) shall apply to the Trusts set out in this deed.
carry out their duties.
Rather than set all of these provisions out, we have
incorporated a set of standard provisions produced
by the Society of Trust and Estate Practitioners
(STEP) into this Trust
You can see the provisions here:
www.step.org/sites/default/files/
Comms/SSP2_rebrand.pdf

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 LIFE POLICY TRUST

SECTION 7 EXECUTION How do I sign/execute this document correctly?

It is vital that this document is executed correctly to
In witness this deed has been executed on the date appearing at the top of the first page be a valid Trust.
You and your Trustees all need to sign where
Executed as a deed by... In the presence of...
indicated and have your signatures witnessed by an
independent witness who must also sign.
An independent witness is someone who is 18 years
old or older, not living at the same address and is
POLICYHOLDER SIGNATURE WITNESS SIGNATURE not a family relative of any signatory.
If you are unsure about whether your witness is
suitable you should check with your adviser. Budget
Insurance cannot be responsible for checking this.
POLICYHOLDER FULL NAME WITNESS FULL NAME
The signatures in this Section should correspond to
(Signed by Policyholder in the presence of an independent witness) the names listed as Policyholder and Trustees in
Section 1.
Executed as a deed by... In the presence of...

Once everyone has signed the document should be

dated at the top of page one.
FIRST TRUSTEE SIGNATURE WITNESS SIGNATURE You will need to inform Budget Insurance that you
have put the Policy into Trust and send us a copy of
this form.
By Post...
FIRST TRUSTEE FULL NAME WITNESS FULL NAME
Budget Insurance
(Signed by First Trustee in the presence of an independent witness) Pegasus House
Bakewell Road
Orton Southgate
Executed as a deed by... In the presence of... Peterborough
PE2 6YS
By email...
SECOND TRUSTEE SIGNATURE WITNESS SIGNATURE life@budgetinsurance.com

SECOND TRUSTEE FULL NAME WITNESS FULL NAME

(Signed by Second Trustee in the presence of an independent witness)

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