What a trustee does
When you die, your trustees make the claim, receive the payout and pass it to the people the trust names. Because the money goes to them rather than into your estate, your family does not have to wait for probate before getting it.
On a flexible trust, trustees also decide who among the named beneficiaries gets what, and when. If your children are young, trustees may hold money for them until they are older and pay out for their needs along the way.
Qualities to look for
Think about the person rather than the title. A good trustee answers letters, keeps paperwork in order, and gets on with the rest of your family. They should be younger than you or around your age, so they are likely to outlive the policy.
Choose people your beneficiaries can work with. A trustee who has a difficult relationship with your partner or your children could make a hard time harder.
Some people choose a professional trustee, such as a solicitor, for a large or complex estate. Professionals charge for their time, so for most family policies a trusted relative or friend works well. If you have children from different relationships, a neutral trustee can help keep things fair.
- Reliable and organised with paperwork
- Likely to be around for the whole policy
- On good terms with your family
- Willing to take on the role
How many trustees, and should you be one?
Two trustees is a common minimum, and some people pick three. If one trustee dies, loses capacity or moves abroad, the others can still act without delay.
Many policy trusts make you a trustee automatically, or let you choose to be one. That lets you keep a hand in decisions while you are alive, such as replacing a trustee. On a joint policy or a critical illness claim, it can also matter who is a trustee, so check the trust deed.
Avoid naming only your partner. If you both died together, or your partner lost capacity, nobody would be in place to act until a new trustee was appointed. A second trustee from outside the household closes that gap.
Ask before you name someone
Talk to anyone you plan to name. Tell them where the policy documents are and how to contact the insurer. A trustee who knows about the role in advance can act quickly, while one who finds out from a letter years later may not know where to start.
You can change trustees later as people move away, relationships shift or your children grow up and can take on the role.
How Hi Tomorrow helps you set up trustees
When we arrange your cover, we talk through who you want as trustees and complete the insurer's trust form with you. We explain the type of trust in plain words and keep a copy on file, so your family knows where to turn. If you need specialist legal advice on a complex estate, we will tell you.