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Life Insurance Trust Deed Template for England and Wales

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Key Requirements PROMPT example:

Life Insurance Trust Deed

"I need a Life Insurance Trust Deed for a £500,000 policy with my spouse as primary beneficiary and my three children as contingent beneficiaries, with specific provisions for distribution if any children are under 21 at the time of my death."

Document background
A Life Insurance Trust Deed is commonly used in England and Wales when individuals wish to ensure their life insurance proceeds are managed efficiently and distributed according to their wishes while potentially reducing inheritance tax liability. The document is particularly valuable for estate planning, as it can help keep insurance proceeds outside of the settlor's estate for tax purposes. The deed establishes the trust structure, defines the powers of trustees, identifies beneficiaries, and provides detailed instructions for the management and distribution of the insurance proceeds. It must comply with English trust law principles and relevant financial services regulations.
Suggested Sections

1. Parties: Identifies settlor, trustees, and beneficiaries

2. Background: Details of the life insurance policy and purpose of the trust

3. Definitions: Key terms used throughout the deed

4. Declaration of Trust: Formal creation of the trust arrangement

5. Trustee Powers: Specific powers granted to trustees

6. Trust Terms: Main operative provisions of the trust

7. Beneficiary Provisions: Rights and entitlements of beneficiaries

Optional Sections

1. Appointment and Removal of Trustees: Additional provisions for trustee succession arrangements when default statutory provisions are insufficient

2. Administrative Provisions: Additional administrative powers and procedures for complex trust arrangements

3. Delegation Provisions: Specific powers of delegation when trustees need explicit delegation authority

Suggested Schedules

1. Schedule 1 - Life Insurance Policy Details: Specific details of the insurance policy being placed in trust

2. Schedule 2 - Initial Trust Fund: Details of any additional assets placed in trust

3. Schedule 3 - Beneficiary Classes: Detailed definitions of beneficiary classes and their respective interests

4. Appendix A - Trustee Powers: Comprehensive list of trustee powers beyond statutory provisions

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

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Trustee Act 1925: Core legislation defining trustee powers, duties, investment powers, and procedures for appointment and retirement of trustees

Trustee Act 2000: Modern update to trust law covering trustee investment powers, statutory duty of care, and delegation powers

Law of Property Act 1925: Establishes fundamental requirements for creation of trusts and formal requirements for trust documentation

Inheritance Tax Act 1984: Governs tax implications of trust creation, including relevant property regime and potentially exempt transfers

Financial Services and Markets Act 2000: Provides regulatory framework for insurance products and rules governing financial promotion

Insurance Act 2015: Sets out duty of fair presentation and governs warranties and terms in insurance contracts

Mental Capacity Act 2005: Addresses capacity requirements for trust creation and powers of attorney considerations

Perpetuities and Accumulations Act 2009: Establishes rule against perpetuities and sets limits on trust duration

Financial Services and Markets Act 2000 (Regulated Activities) Order 2001: Specific regulations governing insurance contracts and related activities

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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