Frequently Asked Questions | Mercer | Support | Personal | Zurich Insurance

Frequently Asked Questions

Do I need to keep making payments for the plan once it’s in trust?

Yes, although the plan is in trust, payments still need to be made to keep the plan live. Nothing has changed in that regards as the plan still pays a benefit to someone, normally a family member or loved one, so payments need to be maintained. You no longer own the plan as it is the property of the trust which will ultimately distribute the plan proceeds to the beneficiary(ies). If you are no longer able to make the payments the trustees or a beneficiary(ies) may be able to.

Does a solicitor need to write a trust for me?

No – trusts for life insurance plans are relatively simple and we provide a range of trusts for you to choose from. You should use our tool to see which trust might be best for you. If you are in doubt though please seek professional advice - you may have to pay for the advice you receive.

Where do I get advice from if I’m not sure?

These pages are intended to provide an overview of trusts and what they can do for you and what their main limitations are. Trusts may not be suitable for all circumstances, so if you are unsure, you should seek professional help from a solicitor or your adviser - you may have to pay for the advice you receive.

Before you complete a trust deed please make sure you’ve used our tool, the supporting information and have read the guidance notes in the trust deed carefully, and you fully understand the benefits and the limitations of the trust you’ve chosen, as once you’ve put your plan in trust it cannot be undone.

Will a trust mean that Inheritance Tax won’t apply?

One of the main benefits of putting a life insurance plan in trust is it won’t normally be included in your estate for Inheritance Tax purposes. Also for most life insurance plans the payments you make will usually be exempt transfers, because the payments are usually made from your normal income/expenditure. Exempt transfers are not subject to Inheritance Tax.

If you’re concerned about Inheritance Tax, you should speak to your financial adviser or a solicitor before you put your plan in trust. Bear in mind that you may have to pay for the advice you receive.

Can I change my mind later and remove a trust?

No – not normally. Once you’ve placed a plan in trust it is then owned by the trust and not you. As it’s an irrevocable act you cannot change your mind later. There may be certain complex circumstances where it may be possible to remove a trust but expert legal advice would be needed, and even then it may still not be possible.

What happens if the trustees need to make a claim on a plan that’s in trust?

The trustees should contact us as soon as possible to let us know that they’ll be making a claim. They can contact us in writing, or by phone or fax. For details of how best to contact us, visit our website www.zurich.co.uk

We’ll let the trustees know what documents we’ll need from them at the time. However we’ll always ask them for the original trust deed, so it’s really important that you keep this in a safe place, for example with your plan documents.

More details about how to claim and what documents we’ll need can be found in the plan conditions.

Once we agree to pay the claim, we’ll usually pay the proceeds to the trustees. It’s then their responsibility to make sure that the money is paid to the beneficiary(ies), or managed on their behalf.

Need help?

Completing the trust deed

For help to complete a trust deed, please call 0345 266 1046, or email zurich.customer.service@uk.zurich.com

However, we won’t be able to advise you which trust suits your personal circumstances, but we will be able to answer factual questions about the trusts themselves.

Looking for advice?

If you are unsure if putting your plan into trust is right for you, or you’re not sure which trust to choose, you should seek professional help from a solicitor or your financial adviser – you may have to pay for the advice you receive.