The benefits from Group Life and Group Dependants' Pension policies must be paid through a discretionary trust – whether this is set up via a Unum Master Trust, or done by the policyholder.
Policyholders do not have to set up their own trust and can simply agree to participate in either the Unum Registered Master Trust LAMP(A) or the Unum Excepted Master Trust LAMP(EX).
LAMP (A), has its own Scheme Administrators and Trustees, and can be used by new or existing Unum Registered Group Life policyholders where lump sum benefits are provided for PAYE taxed employees. Dependants’ pensions are not covered and Schedule D taxed individuals cannot be included as members.
LAMP (EX) has its own Trustees 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 Limited Liability Partnerships.
Excepted Group Life Master Trust FAQs
LAMP (EX) trust - copy
Notice of Participation LAMP (EX)
If you are switching lump-sum benefit insurance of an existing standalone Group Life scheme to Unum and want to use a Unum Master Trust, then in addition to completing a Notice of Participation you will need to terminate your existing trust:
It 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:
There are notes to explain about Registration and the roles of Trustees and the Scheme Administrator:
Relevant life policies, which include Excepted policies, need to provide benefits under a Trust. There are draft Trust wordings available to help you:
Registered and Non-Registered Trusts need to be maintained in line with changes. Supporting documents can be found here to help administer your trust.
While not essential, we recommend that employees covered under a Life Insurance policy complete an expression of wish form, to nominate their policy beneficiary.