Welcome to the forum Dave1966.

There are a couple of different ways to interpret your question which makes answering it a little tricky.

Do you mean that your trustee assisted you to set up a new life insurance policy before your trust deed began which was "in trust" so that it wouldn't pay into the trust deed in the event that you were to pass away?

Or do you mean that your trustee "took an interest" in an existing policy in order that a pay out would have gone to your trust deed if the worst happened to you?

The trustee took an interest in our existing policies.

OK - so I'd expect them to cease having any interest in a life insurance policy (that has no investment/realisable value) once you've been formally discharged from the trust deed Dave1966.

You should probably confirm this with your trustee for your own certainty and reassurance however.

Brilliant, many thanks for your help.

This Forum has been a great help to me over the last 2 years. A wealth of information and guidance.

9 months to go.

The answer may be slightly different if your policy has a surrender value though Dave1966 - ie is an endowment-type policy. In this scenario your trustee may well cash in the policy so that the funds can go to your creditors.

I'm assuming this isn't the case though?

Just a life policy Kevin, no surrender value

That's good Dave1966.

Looks like everything will be fine, but still worth double checking how your trustee will handle this so you know exactly where you stand.

Thanks for your kind words about the site by the way.

It may seem a bit morbid, however the trustee is required to register an interest in the policy. However this is only in the event that something happens during the period of the policy as the funds may go to the Trustee. It's another one of those contentious issues, however there is a requirement in terms of the guidance.

Any interest in the policy will cease on the Trustee's discharge, although it may be worthwhile making sure that the trustee has notified the insurance company to update the position.

Mark

Many thanks again everyone for your input.

I will check with the trustee as to what will happen and will also check with the insurance company when my trust deed is finished.