Discretionary Survivorship Trusts

Discretionary Survivorship Trust

This trust is only for use with joint life first death plans providing life insurance only and not critical illness cover.

If the survivor of you outlives the first life to die by the survival period (30 days), the life insurance proceeds will be paid to you (the survivor). If the survivor of you dies before the end of the survival period (or there is no survivor if you were to die at the same time), the life insurance proceeds will be in trust for the benefit of the trust beneficiaries.

It’s a flexible type of trust which includes a wide range of potential beneficiaries and allows you to add further beneficiaries after the trust has been set up.

The trustees decide which beneficiary(ies) will receive the plan proceeds (if the survivor of you dies before the end of the survival period) and so your choice of trustees is extremely important - you should only choose people you can trust to carry out your wishes.

The trust deed requires you to name ‘default beneficiaries,’ which helps to indicate to your trustees who you’d like to benefit from the plan proceeds but ultimately the trustees have full discretion and can make payment to any of the potential beneficiaries (but again only if the survivor dies before the end of the survival period, otherwise the life insurance proceeds are for the survivor of you).

Discretionary Survivorship Trust Deed

Being a trustee - Your guide

What next?

Before you apply to place your new Zurich plan into trust, you should consider your circumstances carefully and make sure you have read and understood the details of your chosen trust.

Also don’t worry, there isn’t a rush to put your plan in trust. It’s an important decision you should consider carefully, and it’s a step you can take any time after your plan is set up.

It’s also important to complete the trust deed correctly as it will be a binding legal document and the benefits of the plan will no longer be yours, but the trusts. Don’t let this worry you though – we have a team of experts who can help ensure you follow the process correctly.

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.

We may record or monitor calls for training and quality purposes.

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.