Our digital process makes it easier to put protection policies into trust. You can set up the trust during the protection application, and now you can choose to do so after the policy has come into force. Additionally, you can easily check whether a policy is under trust, along with the named trustees and beneficiaries.
How to set up a trust for existing protection policies:
Transcript for video Adding a trust to an existing protection policy
You can easily add a trust to your client’s policy using our digital, signature-free process.
You’ll enter the trustee and beneficiary details to build the trust. Once that’s done, your client will review and approve everything through MyAviva – no printing or posting required.
Existing personal protection policies that include life insurance with a policy number starting with a BPL prefix can submit a trust online with Aviva.
This is your step-by-step guide to start adding a trust today.
Begin by logging into the Aviva Adviser site and searching for your client. On the policy details screen, you’ll see whether the policy is already in trust.
If it’s not, you’ll see an “Add Trust” button – click this to start the process. There’s also a handy link to the protection trusts hub, where you can find more information, guidance, and support materials to help you choose the right trust option.
You’ll be directed to the Add Trust page. At the top, you’ll find a section outlining when a paper trust might be more appropriate.
We recommend taking a moment to review this each time you’re considering placing a policy in trust online – it’s a quick way to ensure the online option is the right fit for your client’s needs.
Also on this page, we explain how the online process works and highlight important information to be aware of.
Once you’ve read through it, simply click Start Add Trust application, to begin.
Confirm that your client’s name and address are correct. Make sure these details are up to date before placing the policy in trust. If anything needs updating, please do this first to avoid delays.
You’ll need to enter the policyholder’s email address.
Double-check it’s correct – this is how your client will receive notifications about the trust application.
As part of the process, you’ll be asked to record what your client wants to retain or gift into the trust.
The system is designed to keep things simple – it will only ask questions that are relevant to the specific policy you’re working on.
For joint life policies, you’ll be asked if the life cover should pay to the surviving policyholder. If yes, this becomes a Survivor Trust.
Your client(s) are automatically appointed as trustees.
However, we recommend that your client appoints at least one additional trustee. If your client passes away without any other trustees on the policy, probate would be needed to appoint a trustee – this may delay payment of a claim.
You can add up to six additional trustees during the process. Simply enter their full details, including addresses.
This is important because each trustee will be contacted at the end of the process and has the option to decline their appointment.
Once you’ve added the trustees, you’ll see a review page where you can double-check the information. You can edit or remove entries if needed before moving on.
Continue to the beneficiary section.
You’ll need to nominate at least one beneficiary to proceed with the online process. Additional trustees can also be named as beneficiaries.
Beneficiaries can be individuals, companies, or charities. Just fill in the required details for each.
You can appoint up to ten beneficiaries through the online journey.
Once you’ve entered the details, you’ll see a review page where you can check everything. You can edit or remove entries if needed before moving on.
When adding beneficiaries, you’ll need to specify how the proceeds should be split. The percentage must be a whole number (no decimals). The total must add up to 100% across all beneficiaries.
You’ll be taken to a final review page where you can check all the details you’ve entered. If anything needs updating, use the links provided to go back and make changes.
Once everything looks correct: Tick the declaration box to confirm.
Click Submit and email customer. This sends a draft to your client via MyAviva for approval.
Important: Once submitted, you won’t be able to make changes – so it’s essential to doublecheck everything before clicking submit.
Once you submit the trust application, you’ll see a confirmation message that a draft has been created.
The trust won’t be set up until your client reviews and approves it via MyAviva. You can also download the confirmation, and draft trust from this page for your records or audit purposes.
We’ve emailed your client. They’ll receive instructions to log into MyAviva and review the trust application.
If it’s a joint life policy, both policyholders will need to review and accept the application.
If approved, the trust is automatically set up.
If rejected but still needed, you’ll need to submit a new application.
After setup, you’ll be able to view the trust details within the policy record on My Clients.
And that’s it! You’ve successfully submitted the trust application – now just wait for your client’s approval in MyAviva.
For further guidance or support, please refer to the protection trusts hub or contact your Aviva Account Manager for tailored advice.
How trusts can help clients plan their legacies
Trusts are a valuable tool for clients who want to help make sure their life insurance benefits are distributed efficiently, securely and in the way they planned. Here’s how.
| Client need: | How trusts can help |
| Make sure benefits go to chosen beneficiaries in a tax-efficient way | Keep policy proceeds outside the estate to reduce or eliminate inheritance tax (IHT) liability |
| Keep control over who receives proceeds of the policy | Let clients appoint beneficiaries and trustees to help avoid disputes and ensure responsible distribution |
| Support beneficiaries until they are ready to manage funds | Enable trustees to hold and manage funds until beneficiaries reach a certain age or maturity |
| Avoid probate delay and ensure faster payouts | Trusts bypass probate, which can speed up access to funds after a claim |
| Make use of inheritance tax exemptions (e.g., HMRC gift rules) | Premiums may be treated as gifts and qualify for IHT exemptions under HMRC rules |
References to tax treatment are based on our understanding of current law and tax regulation, which may change at any time.
Tax treatment depends on the individual circumstances of each customer.
Understanding protection trusts
What is a trust?
A trust is a way for clients to give something valuable (like an Aviva life insurance policy) to other people (the trustees) to look after, without giving them full control over it.
Eventually, the trustees arrange for whatever is valuable and ‘under trust’ to go to the people the client has chosen to receive it. These are the ‘beneficiaries’.
Who is involved?
The ‘settlor’
The settlor is the individual who establishes the trust by applying for the policy and transferring ownership into the trust arrangement. For existing policies, the settlor refers to the current policyholder who has taken the formal step of placing the policy under trust.
They:
- set the trust terms and complete the trust document
- may act as a trustee and appoint others
- choose the beneficiaries
In creating a trust, the settlor gives up ownership, passing the legal title to the trustees and the beneficial interest to the beneficiaries.
The settlor must not be a beneficiary as this will create a “gift with reservation” for IHT purposes – both premiums and proceeds will be added to the estate. But they can retain the right to receive any critical illness or terminal illness benefit. Our 'Discretionary gift trust' and 'Survivor trust' retain those benefits as a default.
The ‘trustee’
Trustees are selected and appointed by the settlor. They are named in the trust document and could be an individual or company. They become legal owners of the life policy under trust.
Key responsibilities:
- Must be over 18 (16 in Scotland) and mentally capable.
- Act in line with the trust document and balance the interests of all beneficiaries.
- Receive and distribute policy proceeds – they cannot use the funds for personal gain.
- Can be beneficiaries themselves, so must be chosen carefully.
- Should ideally be more than one, especially if the settlor is also a trustee.
If the only trustee is also the life assured and they pass away, delays may occur as a new trustee must be appointed through probate.
Choosing a trustee:
Trustees should be someone trustworthy – this is often a relative or guardian. Avoid appointing someone who lives abroad if possible, as this can slow down paperwork. If needed, a solicitor can act as a trustee, though this may incur costs.
The ‘beneficiary’
The beneficiary is the individual or individuals that will benefit from the life policy. They are the equitable owners of the benefits of the life policy.
- Everything carried out is for their benefit.
- Can be sole beneficiary or one of several beneficiaries.
- Depending on type of trust, beneficiaries can be named or be defined as a class.
- They may not know that they are beneficiaries – they don’t need to be informed until the moment of distribution.
Flexible or discretionary trusts allow the trustees to change the beneficiaries after the death of the life assured.
When to recommend a trust:
Here are some common scenarios where a trust is especially suitable:
Trusts options with Aviva
We offer different trust options, depending on the type of life cover your client has and who they'd like to benefit from any payout.
Personal protection
PROTECTION
Discretionary gift trust
This flexible trust allows clients to name a wide range of beneficiaries – including future children or grandchildren – and update them as circumstances change.
Trustees can decide how to distribute the funds, guided by the client’s written preferences.
Clients can keep benefits like terminal or critical illness cover. An optional expression of wish can provide non-binding guidance to trustees on how to divide the proceeds. It’s recommended to review this regularly to reflect any life changes.
PROTECTION
Survivor trust
This trust helps avoid inheritance tax and delays if both partners die together or shortly apart. If the surviving partner lives at least 31 days after the first death, trustees can pay them directly. If not, the funds go to the chosen beneficiaries, bypassing both estates and avoiding probate.
Clients can also keep benefits like terminal or critical illness cover if the trust is set up to allow it.
PROTECTION
Bare trust
Designed for use with Whole of Life Insurance policies. This trust is not flexible. The beneficiaries of the trust and the share that any beneficiary is to receive cannot be changed at any time once the trust is set up.
Also, the trustees will not be able to decide when the benefits are paid to those beneficiaries.
The beneficiaries are entitled to receive their share of the trust fund if they are over 18 and can demand this from the trustee.
Your client’s named beneficiaries will receive all the benefits. Terminal illness, critical illness and total permanent disability cannot be reserved for the settlor.
Only available via paper form.
When to use each type of trust:
Use our handy decision tree below to help identify when to use each type of protection trust.
Is the policy a joint life policy?
YES
Yes
Result: Survivor trust
This trust allows the death benefit to pay to the surviving partner however, if both lives die within 31 days of each other, the death benefit will pay into the trust. For more information about this trust please refer to the 'trust options with Aviva' on this page.
No
Result: Discretionary gift trust
This trust pays the death benefit automatically into the trust. For more information about this trust please refer to the 'trust options with Aviva' on this page.
NO
Do they want flexibility to change beneficiaries in the future?
Yes
Result: Discretionary gift trust
This trust pays the death benefit automatically into the trust. For more information about this trust please refer to the 'trust options with Aviva' on this page.
No
Result: Bare trust
Designed for use with Whole of Life Insurance policies. For more information about this trust please refer to the 'trust options with Aviva' on this page.
Business protection and relevant life
PROTECTION
Partner or Director/Shareholder trust
A partner or director/shareholder trust is a legal and financial arrangement designed to ensure business continuity and fair treatment of partners/shareholders and their families in the event of death or, if included, earlier critical illness.
Each partner or director/shareholder takes out a life (or critical illness) insurance policy in their own name and places it in trust for the benefit of their fellow partners/shareholders. The cover amount should reflect the value of the shares they hold in the business.
When a valid claim is made:
The trust can be written in paper form or online through the application process. Completing the trust online is signature free. Any partner, director or shareholder completing the trust online on behalf of a company needs to ensure all partners/shareholders are in agreement.
A legal agreement (typically a cross-option agreement) is also required before shares can be bought or sold. This agreement gives both parties the option to buy or sell, which becomes binding if exercised. It also helps preserve business property relief for inheritance tax purposes. Aviva does not need to see this document and our specimen option agreement is only available in paper form.
PROTECTION
Relevant life trust
One of the legal requirements for a relevant life policy is that any benefits paid are for the benefit of an individual or a charity.
Making payment of those benefits to the trustees of a suitable relevant life policy trust (i.e. a trust where the only possible beneficiaries are individuals or charities) meets this requirement.
That's why our Relevant Life Insurance policy has to be issued under a suitable trust right from the start.
The trust can be written in paper form or online through the application process. Completing the trust online is signature free. Any director completing the trust online on behalf of a company needs to ensure all shareholders are in agreement.
Transcript for video Video 1
Video Transcript
Transcript for video Video 2
Transcript 2
Transcript for video Video 3
Transcript 3
Why trusts matter for advisers
Professional value:
Business opportunities:
Client outcomes:
Tools and resources
Everything you need to confidently recommend and implement trusts with Aviva.
SECURE
Online portal
Use our digital service to easily put protection plans into trust or submit completed trust forms
Aviva's protection trusts and inheritance tax
PDF (103KB)
Adviser guides
Personal protection forms
Business protection and relevant life forms
BUSINESS PROTECTION
Trust form and specimen option agreement
RELEVANT LIFE
Trust forms and expression of wishes
RELEVANT LIFE
Deeds and trustee retirement
Client-facing guides
PROTECTION
Benefits of trusts
PDF (819 KB)
PROTECTION
Guide for trustees
PDF (453 KB)
Trusts FAQs
General
Why does my client need a trust? Isn’t a will enough?
A will only takes effect after probate, which can delay payouts. A trust ensures faster access to funds and more control over who receives what and when.
Can I put existing policies into trust?
Yes.
For the Aviva online trust: You can place existing policies that include life insurance with a policy prefix of BPL into trust online. The products that meet this are Life Insurance Options, Life Insurance+, Whole of Life Insurance+ and Simple Life Insurance. Please refer to our video tutorial: How to set up a trust for existing protection policies.
You also have the option to use our paper trust forms.
Can I place more than one policy under the same trust?
Yes, if you need to place multiple policies under the same trust, please use our paper trust forms. Unfortunately, this cannot be done online.
Can I put income protection and standalone critical illness policies under trust?
Aviva’s online trust process is only suitable for policies including life cover. Aviva paper trusts are not designed for use with income protection. Whilst they are primarily designed for policies including life cover, if a client didn't want to benefit from the proceeds of a critical illness only policy, they could use the trust.
Are Aviva trusts suitable for business protection?
For business protection, Aviva offers a ‘Partner or Director/Shareholder trust’ which can be used when setting up shareholder or partnership protection. This trust has to be in place at the start of the policy. This can be done via a paper trust, or online through the application journey.
For relevant life, Aviva requires a ‘Relevant Life Insurance discretionary gift trust’ to be in place at the start of the policy for it to qualify as a relevant life policy. This can be done as a paper trust, or online through the application journey.
Can a trust be changed later?
A ‘flexible trust’ offers the flexibility to change the beneficiaries after the policy is active. Aviva offer two flexible trusts, a Discretionary gift trust and a Survivor trust. These trusts also have the ability to split out benefits at the point of setting up the trust such as terminal illness or critical illness. Once a trust is live, these options cannot be changed.
A ‘bare trust’ cannot be changed once set up.
How do trusts support Consumer Duty obligations?
Trusts help ensure good client outcomes by:
Online trusts
Is an online trust valid?
There are three certainties that are required in order to create a trust. These are:
As long as our online process is followed, the trust created will be robust and valid as the requirements relating to the three certainties are satisfied.
When can online trusts be used?
Aviva's online trust process is only suitable for policies including life cover. It isn't suitable for income protection and standalone critical illness policies.
New business policies
Online trusts can be enacted as part of the online application journey. In common with all trusts of life policies which are set up to be effective from Day 1 (written or online), the trust is established by a trust request rather than a trust deed.
Active policies
For personal protection policies on ALPs, an online trust can be set up for an existing policy online through the adviser portal. Through this process, the customer confirms the intention to place into trust through logging into MyAviva.
Can I place my clients' existing Aviva policy in trust online?
You can place existing policies that include life insurance with a policy prefix of BPL into trust online. The products that meet this are Life Insurance Options, Life Insurance+, Whole of Life Insurance+ and Simple Life Insurance.
Why don't we need a signature from the settlor or trustees?
A trust of a life policy (in common with the vast majority of assets) does not need to be by deed or even in writing and so a verbal declaration of trust is sufficient. However, one of the potential issues with this is proving that the settlor made that declaration.
For the new business trust process, the settlor makes that declaration to the adviser which the adviser confirms. For the existing business online trust process, the settlor will confirm this through MyAviva when reviewing and accepting the trust. For both processes hard copies are sent to the trustees so they have the ability to reject being a trustee. However, even if they did reject their appointment that would not affect the validity of the trust.
Settlor
Will my client lose control of their money?
No. Your client chooses the trustees and sets the rules. In many cases, your client can also be a trustee.
Who gets the money if my client dies?
If your client passes away and their life insurance policy is held in an Aviva trust, the money from the payout will go to their beneficiaries. The trustees are responsible for managing the payout and ensuring it reaches the right people.
This setup helps avoid delays from probate and can also reduce or eliminate inheritance tax, meaning their loved ones receive the money faster and more efficiently.
How do I submit a trust form?
You can submit it online via the Aviva Adviser Portal or by post. See tools and resources section.
Can my client continue to benefit under the trust?
Yes — but only if your client's policy is a combined Life and Critical Illness cover and is written under a split trust. This ensures the Critical Illness payout goes to your client, while the Life cover remains protected for their beneficiaries.
Why don't we need a signature from the settlor or trustees?
A trust of a life policy (in common with the vast majority of assets) does not need to be by deed or even in writing and so a verbal declaration of trust is sufficient. However, one of the potential issues with this is proving that the settlor made that declaration.
For the new business trust process, the settlor makes that declaration to the adviser which the adviser confirms. For the existing business online trust process, the settlor will confirm this through MyAviva when reviewing and accepting the trust. For both processes hard copies are sent to the trustees so they have the ability to reject being a trustee. However, even if they did reject their appointment that would not affect the validity of the trust.
Trustees
What happens if a trustee dies or can’t act?
A replacement trustee can be appointed. It’s good practice to name more than one trustee.
How many additional trustees can I appoint?
The amount of additional trustees that can be added through the online journey differs between the new business and the existing business processes. When adding a trust during the new business process, you can add up to two additional trustees. For the existing business online journey to add a trust, up to six additional trustees can be added.
If you need to add more trustees than allowed through the online process, a paper trust should be used.
Can my client appoint additional trustees or remove existing ones later?
Yes, if the trust allows, you’ll need to complete a specific legal document called the Deed of Appointment and/or Retirement of Trustees.
If the trust was created online, you may be able to manage trustee changes digitally through Aviva’s online platform.
Beneficiaries
Can a beneficiary also be a trustee?
Yes, however a trustee cannot appoint benefits to themselves without there being at least one other trustee acting who will not benefit.
What is the maximum named beneficiaries that can be added through the online trust?
The amount of beneficiaries that can be added through the online journey differs between the new business and the existing business processes. When adding a trust during the new business process, you can add up to six named beneficiaries. For the existing business online journey to add a trust, up to ten named beneficiaries.
If you need to add more beneficiaries than allowed through the online process, a paper trust should be used.
Can my client appoint additional beneficiaries or remove existing ones later?
Yes, the process depends on the type of trust that is set up.
To add a Beneficiary:
Use the Deed Adding Potential Beneficiaries form. They may also need to update their Expression of Wishes to guide trustees on their intentions.
To remove a Beneficiary:
Use the Deed of Appointment of Beneficiaries form.
If the trust is 'Discretionary gift', they can update their Expression of Wishes instead of directly removing someone, as trustees have discretion over payouts.
If the trust is 'Bare trust' this is not flexible. The beneficiaries of the trust and the share that any beneficiary is to receive cannot be changed at any time once the trust is set up.
Why don't we need a signature from the settlor or trustees?
A trust of a life policy (in common with the vast majority of assets) does not need to be by deed or even in writing and so a verbal declaration of trust is sufficient. However, one of the potential issues with this is proving that the settlor made that declaration.
For the new business trust process, the settlor makes that declaration to the adviser which the adviser confirms. For the existing business online trust process, the settlor will confirm this through MyAviva when reviewing and accepting the trust. For both processes hard copies are sent to the trustees so they have the ability to reject being a trustee. However, even if they did reject their appointment that would not affect the validity of the trust.
GET IN TOUCH
Need help choosing the right trust for your clients?
Contact your Aviva Account Manager for tailored advice.
See our contact us page for a full directory.