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If the proceeds are to be payable to a wife or child, there are advantages in making the policy one written under trust under the Married Women's Property Act, since the proceeds then do not form part of the purchaser's estate liable to capital transfer tax.
It must be borne in mind that the provisions of such a trust cannot usually be altered without the assent of the other trustees and the named beneficiaries, and if the latter are children they cannot give their assent until they are over 18.
Policies may also be written under trust for the benefit of others outside the immediate family. The advantage of policies written under statutory trust (that is under the Married Women's Property Act 1882, the Married Women's Policies of Assurance (Scotland) Act 1880, the Law Reform (Husband and Wife) Act (Northern Ireland) 1964), or under non-statutory trust, is that on death the life office can make immediate payment of the proceeds to the trustees of the policy on production of the policy document and the death certificate and without production of probate.
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