AGEAS PROTECT FINAL SLIDES

Trusts and life insurance July 2014 Agenda • Protection Challenges 2014 • Key parties and responsibilities • Right money, right hands, right time • Types of Trust • Common queries • Ageas Protect and trusts For adviser use only Not to be shown to retail customers Learning Outcomes • Understand basic features of trusts • Identify benefits of putting life insurance into trust • Recognise the difference between bare, discretionary and split trusts • Understand the responsibilities of the parties involved • Have an overview of the Ageas online trust process For adviser use only Not to be shown to retail customers Protection Challenges 2014 • Price driven market resulting in lack of perceived value around advice process • Lack of customer loyalty & high lapse rate • Lack of customer referrals • Regulatory requirements to demonstrate good customer outcomes Potential Solution -Trust Planning For adviser use only Not to be shown to retail customers What is a Trust? • A formal transfer of property • Any type of property - Shares - Buildings - Cash - Life insurance policies • For the benefit of another person or people • Similar to a will but specific to an asset or assets • A way of choosing who will receive the benefit of a certain asset, without giving them full and immediate control For adviser use only Not to be shown to retail customers Agenda • Protection Challenges 2014 • Key parties and responsibilities • Right money, right hands, right time • Types of Trust • Common queries • Ageas Protect and trusts For adviser use only Not to be shown to retail customers Trusts – Key parties involved Settlor Trustees For adviser use only Not to be shown to retail customers Beneficiaries Responsibilities - Settlor Settlor •The settlor is the person who sets up the trust and transfers property into it Settlor •The settlor will appoint trustees to administer the trust and decides who the beneficiaries will be •If the settlor wants to put a life assurance policy in trust, it must be a policy that they own For adviser use only Not to be shown to retail customers Responsibilities – the Trustees Trustees The trustees are the legal owners of the property held in a trust Trustees Their role is to: • deal with the assets according the settlor’s wishes • manage the trust on a day-to-day basis • decide how to invest or use the trust’s assets If the trustees change, the trust can still continue, but there must always be at least one trustee * Their main duties are set out in Section 1, Trustee Act 2000 For adviser use only Not to be shown to retail customers Responsibilities – the Beneficiaries Beneficiaries The person/people who will receive the assets from the trust There might be more than one beneficiary, such as a whole family or defined group of people They may benefit from: Beneficiaries •The income of a trust only – i.e from renting out a house held in a trust •The capital only – i.e getting shares held in a trust when they reach a certain age •Both the income and capital of the trust For adviser use only Not to be shown to retail customers What are the Relevant Life trust requirements ? Relevant life policies must be written in trust •The trust benefit must be paid to an individual or charity rather than the employer funding the premiums •We use a split trust so the employee can retain terminal illness benefits • Employer AND Employee will both automatically be trustees plus another •Must be in trust from outset, but with Ageas Protect you can it using our: - Online split trust declaration form, or - Paper split trust declaration form •No advice will be given but assistance will be provided in completing the Trust form •It will not be possible to use the online trust when transferring ownership to a new employer as this is only available for new policies Agenda • Protection Challenges 2014 • Key parties and responsibilities • Right money, right hands, right time • Types of Trust • Common queries • Ageas Protect and trusts For adviser use only Not to be shown to retail customers Ageas Protect and trusts We give advisers the tools to tailor the right trust to clients’ expectations… • • • • • • Guide to trusts Expression of Wishes form Split Trust form Bare trust form Discretionary Trust form Online system For adviser internal use only Not to be shown to retail customers On-line trusts • No signature required • Policyholder is automatically selected as first trustee • There can be an unlimited amount of Trustees per Trust • We note the policy is under trust so there is nothing to be sent in to Ageas • The trust cannot be partially completed online therefore reduces errors • If trust needs to be changed, client needs to complete a paper form and send in • Trust declaration can be e-mailed or posted to client For adviser internal use only Not to be shown to retail customers Can be completed at any point during the application process For adviser use only Not to be shown to retail customers Online trust journey System automatically selects the correct type of trust for the policy For adviser use only Not to be shown to retail customers Online trust journey Retained benefits as discussed earlier For adviser use only Not to be shown to retail customers Online trust journey For adviser use only Not to be shown to retail customers Online trust journey Settlor can be first trustee if required For adviser use only Not to be shown to retail customers Online trust journey Address auto-search – this MUST be completed to continue Minimum of one extra trustee required For adviser use only Not to be shown to retail customers Online trust journey Minimum of one potential beneficiary required For adviser use only Not to be shown to retail customers Online trust journey PDF trust declaration can be either e-mailed or posted to client For adviser use only Not to be shown to retail customers Learning Outcomes • Understand basic features of trusts • Identify benefits of putting life insurance into trust • Recognise the difference between bare, discretionary and split trusts • Understand the responsibilities of the parties involved • Have an overview of the Ageas online trust process For adviser use only Not to be shown to retail customers Summary • Trusts can be simple • Trust process can be straight forward • Trusts can add value back into your protection advice process - Assists in building long-term relationship with clients - Create referral opportunities - Provides good customer outcomes For adviser use only Not to be shown to retail customers Thank you www.ageasprotect.co.uk ...Agenda • Protection Challenges 2014 • Key parties and responsibilities • Right money, right hands, right time • Types of Trust • Common queries • Ageas Protect and trusts For adviser... retail customers Agenda • Protection Challenges 2014 • Key parties and responsibilities • Right money, right hands, right time • Types of Trust • Common queries • Ageas Protect and trusts For adviser... retail customers Agenda • Protection Challenges 2014 • Key parties and responsibilities • Right money, right hands, right time • Types of Trust • Common queries • Ageas Protect and trusts For adviser