If a life policy is written in trust does it need to be registered at TRS

Trusts Discussion
1

Hello, I hope someone on here may be able to assist.

I have taken over an estate which includes a modest Phoenix policy which Phoenix say is to be paid to two brothers (who do not get on) as nominated trustees for their benefit in equal shares. I have not seen the trust deed and do not know if any withdrawals were made from the policy during the deceased’s lifetime who died in February 2022. Probate was issued in January 2025. Phoenix have said that as the policy is written in trust it must be registered with HMRC even if the claim is paid out immediately and no further Trustees are appointed and they want proof of trust registration before they will make a payment. They do say that if we believe the trust is exempt from registration to contact them. Whilst I want to request more information from Phoenix to include requesting a copy of the trust deed, I would be interested to hear your views as from the research I have done, I am not sure it does need registering unless it didn’t but now does because the deceased died more than two years ago. Thank you.

2

Yes, I think registration is due to the fact that the life policy has not been paid out within 2 years of death - see Grace’s example: TRSM23030 - Types of trust that need to be registered: contents: excluded express trusts: contents: insurance policies and compensation pay-outs - HMRC internal manual - GOV.UK

Ihsan
I Will Solicitors Ltd

3

On the basis this is an investment bond held in a Provider Trust, ie Phoenix then this does fulfil the requirements for TRS registration. The trust deed would be a proforma provider deed, so an express trust. If your client does not have a copy of the deed the provider may be able to supply one.