Aegon has introduced an electronic discretionary trust form to make it easier for advisers to put personal protection and whole of life policies in trust.
The new form aims to speed up the process as settlors and trustees will be able to sign electronically.
The provider has also streamlined the process to create its discretionary trust, both at set-up stage with a clients’ protection application and if assigning an existing policy into trust.
It’s a split trust which means only life protection and terminal illness benefits will be held in trust for the clients’ beneficiaries.
Aegon said this lets clients retain access to claim proceeds for benefits such as critical illness cover, income protection and any associated benefits.
Stephen Crosbie, protection director at Aegon, said: “Avoiding the need for a grant of probate to speed up payment of a claim and the associated inheritance tax savings are two benefits of having a policy written in trust.
“With the rise in remote working, our new discretionary trust lets advisers and their clients complete a trust electronically, without the hassle of wet signatures, to provide peace of mind that their policy will pay the right people at the right time.”
If a joint-life first death policy is placed into the discretionary trust, a survivorship clause will automatically apply.
This means any claims payable after one insured person dies will be paid to the surviving insured person, as long as they survive for 30 days.
Aegon has also created a guide for advisers to use with their clients to help explain the process for setting up this trust.
It comes after Aegon found that only about one in five of its protection policies are currently held in trust, meaning people could be missing out on certain benefits.
amy.austin@ft.com
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