Group Life - Trust Information
The benefits from Group Life policies must be paid through a discretionary trust – whether this is set up via a Unum Group Life Master Trust, or done by the policyholder.
There are a number of ways a discretionary trust can be set up:
Policyholders do not have to set up their own trust and can simply agree to participate in either the Unum Registered Group Life Master Trust LAMP (A) or the Unum Excepted Group Life Master Trust LAMP (EX). All Master Trusts require a Notice of Participation to be completed before going on risk.
Outline of Unum Group Life Master Trusts
Unum Registered Group Life Master Trust - LAMP (A)
LAMP (A), the Unum Registered Group Life Master Trust, has its own Scheme Administrators and Trustee, and can be used by new or existing Unum Registered Group Life policyholders where lump sum benefits are provided for PAYE taxed employees. Please note, dependants’ pensions policies cannot be included. Schedule D taxed individuals also cannot be included as members.
Composite copy of the Life Assurance Master Plan LAMP (A) Trust Deed and Amendments (Registered)
Notice of Participation LAMP (A)(Registered)Unum Excepted Group Life Master Trust - LAMP (EX)
LAMP (EX), the Unum Excepted Group Life Master Trust has its own Trustee and can be used by new or existing Unum Excepted Group Life policyholders, where benefits are provided by companies for PAYE taxed employees. It is not available for Partnerships except for Limited Liability Partnerships.
Frequently Asked Questions (FAQs)
Composite copy of the Life Assurance Master Plan LAMP (EX) Trust Deed and Amendments (Excepted)
Notice of Participation LAMP (EX)(Excepted)Switching to a Unum Group Life Master Trust
If you are switching Group Life lump-sum benefit insurance of an existing standalone Group Life scheme to Unum and want to use a Unum Group Life Master Trust, then in addition to completing a Notice of Participation you will need to terminate your existing trust:
Terminating Plan
How to switch to a Unum Group Life Master TrustIt is the responsibility of the policyholder, using their own trust to administer and maintain the trust, to meet the requirements for being Registered with HMRC or Non-Registered, as appropriate.
The benefits you are insuring may be those promised through your existing pension scheme or group life scheme, which is established under trust and documented. This scheme can continue and the existing trust used. You continue maintaining the trust documentation.
If you want to set up a standalone group life scheme, there are draft Trust wordings available to help you. The drafts allow for dependants' pensions as well as lump sum benefits. They also allow for the inclusion of Schedule D taxed individuals such as Equity Partners:
Registered Group Life Assurance
Deed of Participation
Deed of Change of Principal
Deed of Removal and Appointment
Deed to Change the SchemeThere are notes to explain about Registration and the roles of Trustees and the Scheme Administrator:
Relevant life policies, which include Excepted Group Life policies, need to provide benefits under a Trust. There are draft Trust wordings available to help you:
Expected Group Life Assurance
Deed of Participation
Deed of Change of Principal
Deed of Removal and Appointment
Deed to Change the Scheme
Expression of Wish form (Beneficiary Nomination form)If you want to set up a standalone group life scheme in the Isle of Man, there are draft Trust wordings available to help you.
IOM Approved Trust (LTD/PLC/LP)
IOM Approved Trust (Any)
IOM Deed of Participation
IOM Guide – Standalone Group Life
Supporting documents
Registered and Non-Registered Trusts need to be maintained in line with changes. Supporting documents can be found here to help administer your trust.
There are draft wordings available to help you with common changes:
Deed of Succession (LTD/PLC/LLP)
Deed of Succession (Partnership)
Trustees Replacement
Trustees Addition
Trustees Removal
Change of Plan Name
Change of Principal Employer NameWhile not essential, we recommend that employees covered under a Life Insurance policy complete an expression of wish form, to nominate their policy beneficiary.