Life Insurance - tracking down the trustees

Chloe_G

My mother has Aviva life insurance which is written in trust.  She was advised to do this so there would be no inheritance to pay on the final value.  She took the insurance out in the 80s and the Trustees were her financial advisors at the time but this firm no longer exists. 

I have found out through googling that they were taken over by another firm who in turn were taken over by a third company.  My question is what happens to the money when she dies? Will Aviva just pay it out to the Executors?

Thank you.

tls123

It would be better for your mother if she is still alive to contact Aviva now and change the trustees I.e make you the trustee that way you don’t need to get an extra firm involved. Who is the beneficiary on the policy? Knowing Aviva if she died they would insist on trustees signing any paperwork so if can simplify this now do so

Chloe_G

Hi, it's split between her children  - thanks I will get her to do this.

Chloe_G

Just heard back from the insurance company and they said she needs to consult a solicitor to get the dissolved Trustee Corporation removed as a Trustee.

tls123

Usually the settlor (who set this up) is also a trustee is your mother not a trustee? Surely if financial advisor (trustee) is dissolved you would merely need to show them evidence of this to remove them as 2nd trustee as not sure what a solicitor would do? Aviva online have paperwork to make amendments to policies in trust. I would speak to Aviva again as unless you get the right team they often give differing advice it sounds like someone untrained told you to get legal advice without explaining why. 

tls123

https://static.aviva.io/content/dam/document-library/adviser/individualprotection/al53007.pdf

tls123

https://www.aviva.co.uk/insurance/life-products/life-insurance/aviva-trusts/

poseidon1

Chloe_G said:

Just heard back from the insurance company and they said she needs to consult a solicitor to get the dissolved Trustee Corporation removed as a Trustee.

In my view, your mother may have to use her express powers ( as settlor) of the policy trust to replace the trustees and appoint new ones.

If the trust deed is silent on the settlors powers in this regard, then reliance must then be placed on statutory powers under Section 36 Trustee Act 1925 - see link below

https://www.hughjames.com/blog/how-to-remove-a-trustee-v2/#:~:text=2.1 Section 36 Trust Act,or where they are minors.

Either way, Aviva will likely require a bespoke document explaining why the original trustees are not party to the  deed replacing them.

Chloe_G

Thanks for all your comments.  My mother is named as a trustee along with the trustee corporation so I will try Aviva again.

I have done a lot of research and I'm leaning towards Section 41 Trustee Act 1925 'where a trustee (that is a corporation) is in liquidation or has been dissolved'.

I have contacted two local solicitors so far who both said they cannot help (although one did say there were too busy and I could try them in a couple of months).  This is all a bit of a pain for us, particularly bearing in mind that she has paid far more into the policy than the amount that it will be worth and she is in her late 90s. (Obviously we are really glad she is in her late 90s and has outlived the life insurance!)

poseidon1

Chloe_G said:

Thanks for all your comments.  My mother is named as a trustee along with the trustee corporation so I will try Aviva again.

I have done a lot of research and I'm leaning towards Section 41 Trustee Act 1925 'where a trustee (that is a corporation) is in liquidation or has been dissolved'.

I have contacted two local solicitors so far who both said they cannot help (although one did say there were too busy and I could try them in a couple of months).  This is all a bit of a pain for us, particularly bearing in mind that she has paid far more into the policy than the amount that it will be worth and she is in her late 90s. (Obviously we are really glad she is in her late 90s and has outlived the life insurance!)

All points noted.

However as regard using section 41 instead of section 36 I don't think that's the route I would follow automatically, since it necessarily requires a referreral to a  Judge in Chambers for a ruling which may also nessitate instructing a barrister to settle the application. Therefore more expensive and potentially slower process.

Section 36 ( more of a catch all section) should be able to rely on your mother' status as settlor and trustee to draft a deed  excercising her power of removal/ replacement assuming such powers are not already explicitly stated within the trust deed- see below link to a trust specialist  exchange of views with regard  to the section

https://trustsdiscussionforum.co.uk/t/s36-1-ta-1925-requirement-for-removal-and-replacement-of-trustee/18956

As to finding an appropriate firm of solicitors I should have suggested you find a firm with STEP qualified individuals. STEP is the Society of Trust and Estate Practitioners,  and members are a significant cut above average high street solicitors in terms of competency and expertise - see link below to their website to locate suitable firms - 


https://www.step.org/about-step/public

Chloe_G

Thanks @poseidon1.  I've had a reply from a firm who might take this on now and I've checked your link and they are listed in the Step directory so hopefully we may get it sorted out.