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Trust Scottish Provident to make it easier
At Scottish Provident we want to make the use of trusts as simple as possible so your clients can understand and appreciate the benefit of placing their protection plans in trust.
We are pleased to tell you that we have listened to your suggestions and have made some improvements. Here are some of the changes:
- We now have separate bare trust and discretionary trust versions of our split trust and gift trust. This means your clients will no longer have to initial the trust form to select whether the trust will be bare or discretionary, thereby streamlining the overall process.
- The split trust is now available for use with all Self Assurance plans, including those that include death or earlier critical illness benefit, plus an additional death benefit or the critical illness buyback option.
- The split trust is also available for use with our Pegasus plans provided they do not include the cover buyback option*.
- The majority of our trust forms have been simplified, with clearer guidance notes. The parts to be completed by your clients are now contained within a single section, which can be found immediately before the signatures section.
These changes will go live on 13 September and the new trust forms should be used from this date. The existing trust forms will be invalid then and should not be used with plans being placed in trust for the first time. Please visit www.scotprovliterature.co.uk to order supplies of the new literature from this date.
Important note
From 13 September, we will only be able to note old versions of the split trust forms, for plans being placed in trust for the first time, if all of the plan benefits are included in a single trust form**. If two trust forms are completed in respect of a single plan or if the trust does not include all the plan benefits and the plan has not been noted in trust by 13 September, we will return the trust form(s) for amendment.
Why should you consider placing your client's protection policy in trust?
Download a copy of our trusts sales aid, which lists the benefits of placing your client's plan in trust.
Tax and trust support
If you need some trust guidance, you can email our team of trust experts at taxtrust.techsupport@scotprov.co.uk for help and support on all protection specific tax and trust related issues.
Contact us
If you would like to speak to one of our consultants, please call our sales team on 0845 300 0005 (option 2) or email campaign@scotprov.co.uk and they will be happy to help with any information you require.
* The cover buyback option within a Pegasus plan means that if a critical illness claim is paid there may be a second payment on death. However, as any surrender value will have been part of the critical illness claim, this could create a gift with reservation of benefit in relation to the death benefit, which could then be subject to inheritance tax at 40% (2010/11 tax year).
** This does not apply to Self Assurance plans that include Pension Term Assurance, where the new split trust forms are not suitable for use.
Article last updated: Sep 8, 2010
Derek Bradley, CEO
Sarah Paul, Marketing Director
James Bradley, Head of e-Relationships
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