Trust deed options and templates

Our Group Life Insurance policies are designed to work with discretionary trusts. There’s a number of ways to set up a discretionary trust. We’ve provided a range of template deeds to help you get started.

What are the risks?

It’s important to make sure you have the right trust in place for your policy and we cannot provide you with any advice. We strongly recommend seeking legal advice to determine the right trust for your organisation. It’s your responsibility to administer and maintain your trust, including compliance with any HMRC requirements.

Find out more in our trusts guide

Trust options

We can pay Group Life Insurance benefits through a pension scheme trust or a stand-alone discretionary trust. You can also choose to register your trust with HMRC or set up a non-registered excepted trust. We’ve set out the different options below.

Registered trusts

Registered trusts are discretionary trusts that have been registered with HMRC. Once a trust is registered, you can take out a Group Life Insurance policy with us.

Setting up a standalone registered trust

Follow these steps to set up a standalone registered trust:

1. Execute a discretionary trust

You can use your own trust or our template discretionary trust deed.

2. Appoint a scheme administrator

To appoint a scheme administrator you’ll need a Government Gateway user ID.

If you don’t have a Government Gateway user ID, you can create one the first time you register. You must choose ‘organisation’ when asked what type of user you are.

Find out more about how to register at the HMRC website.

3. Register the scheme

Once you’ve signed up and appointed a scheme administrator, you’ll be able to sign in to the online service to register your scheme.

After you’ve registered the scheme, you’ll receive a Pension Scheme Tax Reference (PSTR) number. You’ll need this number and the date of the trust deed to take out a policy with us.

Key documents:

Use this template deed to set up a registered standalone trust for a Group Life Insurance policy. You can include other employers when you execute this deed for the first time.

PSO numbers

If your scheme was established before 6 April 2006 you may have a PSO number, which can be updated to a PSTR number. Please visit the HMRC website to find out more.

Non-registered excepted trusts

You can also use a non-registered excepted trust to set up a Group Life Insurance policy. Excepted trusts aren’t registered with HMRC and they’re treated differently for tax purposes. 

Key documents:

Use this template to set up a non-registered excepted trust for a Group Life Insurance policy and/or relevant life policies for individuals. It’s not suitable for arrangements in the Channel Islands or Isle of Man.

Our template amending trust deeds

You can use the following trust deeds templates to amend or change our discretionary trusts. Each deed contains notes to help you complete the document. You may need to call the HMRC helpline if you wish to change the principal employer or scheme name.

We recommend seeking independent legal advice in all circumstances.

Deed of amendment to update to latest rules (post A-day terms)

Use this deed to update the trust deed and rules in line with the most up-to-date version, meeting the requirements of the Finance Act 2004.

Use this deed to change the principal employer, trustee(s) and scheme name. We’ll also need a change of policyholder form to make this change to the policy.

Use this deed to cover employees of another employer. We’ll need to agree this change before we can provide cover.

Use this deed to appoint a new or replacement trustee.

Use this deed to remove a trustee where at least one other trustee remains. This deed does not require the signature of the trustee you want to remove.

Use this deed to retire a trustee where at least one other trustee remains. This deed requires the retiring trustee’s signature.

Use this deed to change the name of a Group Life Insurance scheme.

Master Trust

Available through CLASS, our Master Trust offers a simple way to set up a Group Life Insurance policy. Instead of setting up your own trust, you can join our Master Trust – an existing registered trust administered by an independent third-party. The independent trustees decide who receives claim payments and will keep the trust up-to-date in line with any changes in legislation.

Find out more in our Master Trust guide

Key documents:

You must complete a Deed of Participation in order to join the Master Trust.

Excepted Solution

Our Excepted Solution allows you to set up an excepted trust with pre-appointed trustees. This is an alternative to a standard excepted trust, where the employer would either appoint themselves as a corporate trustee, or appoint individuals to act as trustees.

The pre-appointed trustees are responsible for deciding who receives benefits when there’s a claim pay-out. You’ll need to execute our template Excepted Solution Trust Deed to use this option. Everyone included in the scheme should be encouraged to complete an Expression of Wish form to help the trustees make their decision.

Find out more in our excepted solution guide

Key documents:

You can use this trust deed to establish a standalone trust that works with our Excepted Solution. You can’t change the trust deed and rules.

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