A life insurance trustee is the person who, once a policy is written in trust, legally holds it for the people who are meant to benefit: they make the claim when the policyholder dies and see that the money reaches the right people. This page covers what trustees do, who can be one, how many to name and how to replace one.

If you are still deciding who to name, an FCA-authorised broker can consider the choice against your own policy, and the form on this page books you a phone call at no cost.

What does a trustee of a life insurance trust do?

GOV.UK's guide to trusts and taxes describes trustees as the legal owners of whatever a trust holds, and lists their role as dealing with the assets according to the settlor's wishes in the trust deed, managing the trust day to day and paying any tax due. Legal & General (L&G) says on its protection trusts page (read 26 October 2026) that when a trust holds nothing but a protection policy, its trustees usually have little to do until a claim is made.

When that time comes, the trustees are the ones the insurer deals with. L&G's policy terms (October 2026 edition) say that if a policy has been placed in trust, "we'll pay the trustees". Its trustee questions list what they need to start a claim: the trust form and any later deeds, the original policy schedule, and the death certificate (or medical evidence for a terminal or critical illness claim).

Insurers also check who they are paying. Zurich's guide for its trustees (October 2022 edition, written on the law as it stood in May 2021) says it must confirm the identity of everyone who controls the trust property, and that "Without ID from all trustees we may not be able to make changes to the policy, or pay out the proceeds of the policy".

What do trustees do with the money, and what must they record?

Zurich's guide says what trustees do next often depends on the age of the beneficiaries. If the beneficiaries are 18 or over, the trustees can distribute the proceeds under the trust's terms (depending on the type of trust they may be obliged to), and that completes their duties. If a beneficiary is under 18, the trustees normally keep the money, manage it and file tax returns until the beneficiary is old enough. Life insurance in trust for a child covers that case, and life insurance trust options explains how bare and discretionary trusts differ in what the trustees may decide.

Aviva's guide to trusts (January 2026 edition) spells out the rest of the job:

  • Trustees act impartially between beneficiaries and in all their best interests.
  • They should all agree on decisions: if most want to pay a beneficiary but one does not, Aviva says "the beneficiary cannot be paid".
  • "Trustees must keep a record of any decisions they make, actions they take, advice they have taken and any costs the trust has had to pay." Annual accounts are expected too, and Aviva says they can be very simple where the trust holds only cash or the right to a life policy's benefits.

L&G adds that trustees may not profit personally from the role. Zurich's guide says trustees are responsible for reporting any tax due on behalf of the trust and arranging its payment; tax rules change, and that guide reflects the law as at May 2021. Whether a policy trust has to be registered is for does a life insurance trust need to be registered, and is life insurance taxable in a trust covers the tax side. For holding a payout in an account until it is paid on, see the life insurance trust bank account. What an insurer expects at the payout stage varies by policy, so ask the broker about yours during the call-back.

Who can be a life insurance trustee, and who should you choose?

The insurers' rules are broad. Aviva's guide asks for trustees who are over 18 (the legal minimum it gives for England and Wales), mentally capable and with a sound financial history. L&G's trustee questions say trustees need to be over 18 and of sound mind, and that it is usually easier if they live in the UK. Royal London's guide (October 2025) says you can choose anyone you trust, such as a spouse, family member, friend or solicitor.

On who suits best, Aviva says trustees need good financial knowledge and to be someone the settlor can trust, whether a friend, a family member or a professional adviser, and that a professional will usually charge. It also says "It may not be a good idea to ask a beneficiary to become a trustee as this could lead to a conflict of interest". L&G notes that many people choose a family member or friend, some a professional such as a trust company, solicitor or accountant, and some a mix.

Practical points count too. Zurich's guide warns that a large number of trustees, or trustees based outside the UK, can mean delays when a change needs every trustee to approve it. Should you want another view on a shortlist, the form here gets you a phone call from a broker, at no charge.

How many trustees do you need, and can you be one yourself?

With the large insurers' trusts the policyholder is normally a trustee by default and the question is how many others to add.

InsurerIs the person setting up the trust a trustee?How many trustees?
Aviva (guide to trusts, January 2026)Yes: "the settlor has to be one of the trustees", and is normally regarded as the "lead trustee".At least one who is not a settlor, and a minimum of two trustees in all; more than one additional trustee is recommended but not mandatory.
L&G (protection trusts page, read 26 October 2026)Yes: the settlor is automatically a trustee of all its insurance trusts.At least one other. L&G says: "We usually suggest that a maximum of four but a minimum of three trustees however it's up to the policyholder to decide how many trustees they want."
Zurich (guide to being a trustee, October 2022)Yes: on Zurich trusts, the settlors are automatically trustees.Its Absolute Trust Deed (August 2025 edition) lets the settlor remove a trustee only if at least two remain and one of them is neither the settlor nor the settlor's spouse or civil partner.

Aviva's guide adds that if a couple put a joint policy in trust, they must have at least one trustee other than themselves, so that a trustee is still there if both settlors have died. GOV.UK states the general floor: "there always has to be at least one trustee".

Being a trustee yourself keeps you involved. Aviva says the settlor as lead trustee can appoint and remove trustees during their lifetime under most of its trusts, and L&G says that because the settlor is automatically a trustee they keep some say in how the trust is run.

How do you replace a life insurance trustee?

Trustees can be changed while the policy runs, and the trust carries on through the change. Each insurer's rules for adding, retiring and removing trustees, form by form, are on changing a life insurance beneficiary; what follows are the practical points a trustee or settlor tends to meet.

The paperwork has to be right. Aviva's Deed of Appointment/Retirement of Trustees (EDCO2627 0126) needs every signature witnessed by an independent adult who is not related to the settlor or the trustees, any new trustee must be 18 or over, and the original or a certified copy goes back to Aviva.

Royal London's equivalent form (P8B0038, June 2024) works differently in one respect: you send Royal London a copy to note and keep the original with the trust papers. It says "The form does not deal with the removal of a Trustee without his/her being party to it", so a removal must follow whatever powers the trust itself gives, and a replacement should normally be appointed at the same time. Zurich's Absolute Trust Deed covers a trustee who cannot be found: if there are at least two other trustees, the rest can discharge the missing one after reasonable efforts to find them.

Who holds the power to appoint a new trustee is set by the trust wording, so read the deed before drawing up a change. If a trustee wants to step down or moves house, Zurich asks them to tell the settlor, if alive, and the co-trustees so the records can be updated. Your own insurer's preferred form for these changes is worth checking with a broker when they ring back.

Frequently asked questions

What does trustee mean in life insurance?

It means a person named in the trust paperwork to hold the policy for the beneficiaries. L&G describes trustees as appointed to be the legal owners of the policy, who tell it of any claim, receive the payout and pass it on.

Who is the trustee on a Legal & General or Aviva policy in trust?

You are, along with whoever else you name. Both L&G and Aviva make the policyholder a trustee automatically and require at least one other person.

Can a life insurance trustee be paid?

A professional trustee can. Aviva's guide says a professional trustee will usually charge and may claim reasonable fees, but must not manage the trust so as to get extra work. Zurich says any other personal financial benefit from being a trustee must be declared and passed to the trust.

Is a trustee personally responsible if something goes wrong?

Aviva's guide says a trustee who fails to follow the trust or their duties is personally liable to make good any financial loss to the fund. It says that liability is limited to fraud, wilful misconduct or gross negligence on the trustee's part, a limit that does not apply to a trustee acting professionally.

Questions about who should hold a particular policy for your family can go to a broker, who calls back free once the enquiry form is sent.

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