When it comes to life insurance and estate planning, in order to ease the process of distributing the funds following the death of your client, an insurance policy can be held as an asset in the Trust.
This Trust, subject to certain conditions, may be excluded from registration during the lifetime of your client/the person assured (Sch3A(4) of the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017).
After your client has passed, the Trust will continue to be excluded from registration provided that the Trust receives the pay-out from the policy. The Trustees will have two years to distribute the funds to the Beneficiaries of the Trust. If the funds have not been distributed fully within the two years, the Trust will then need to be registered.