Relevant Life Policy and Divorce

metal675 Posts: 81
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edited 4 November 2023 at 2:05PM in Insurance & life assurance

I have a Relevant Life Policy for a company where I am the life insured and I am the sole director and employee of the company. The policy is set in a discretionary trust.

One of the trustee is my ex with whom I am now divorced.

  1. Can anyone please advise will my ex still be eligible for a payout in the event of my death even if we have legally divorced?

2. I would like to change the Trustee to my new partner, but it still requires the consent and signature of the ex partner on the Deed of Appointment/Retirement of Trustees form. Any suggestions to get around this? Would a decree absolute be sufficient to retire ex from the trustee?

3. Does anyone have similar experience please?



  • missimaxo
    missimaxo Posts: 383
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    Not related to a company but I had 2 life policies held in trust and my ex was trustee and beneficiary. I was told he would have to sign to change both which I never wanted contact due to abuse. I was told it was easier to stop payments, let them lapse and take new policies out. My payments went up slightly but as I'm healthy it wasn't a lot and for my peace of mind far better than dealing with him.
  • DullGreyGuy
    DullGreyGuy Posts: 9,069
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    Read the deed you signed to create the trust, it will state how it operates. By default the standard wording from most, if not all, insurers doesn't even ask the relationship between the Settlor and the other Trustees let alone have provisions to cover divorce etc. 

    If you don't want to get their consent either they remain the trustee or you stop the policy and buy new but get quotes for doing so before cancelling the old one as you're now older and so prices are likely to be higher.
  • metal675
    metal675 Posts: 81
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    Thank you for your replies.

    I understand I can take a new policy but I did not want to go down that route as few years have passed and want to avoid new medical underwriting. Would ideally prefer to keep the policy and hence was looking for advise if anyone has been in the same situation and kept the same policy.

     Yes it does not ask for a relationship between settlor and trustee but if I have to retire an existing trustee (my ex in this case) then I need their signature.

  • kingstreet
    kingstreet Posts: 38,604
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    Presumably you and the Company are the other trustees at present and you are concerned your ex will be trying some way to be a beneficiary? Did you appoint any other trustees? Do you have the power to appoint more now? If so, simply appoint additional trustees and make it clear to them they should prevent your ex from making any attempt to benefit from the trust in the event of your death.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
  • Thank you.

    There are 3 trustees with one being my ex. I want to replace the ex with a new trustee.

    Thanks for your suggestion of notifying the other trustees
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