Statement of Preference in Will
Once a life policy has been placed in trust, the trustees assume control of the policy, and the insured person cannot stipulate who will get a benefit in the event of a claim, it is up to the trustees to decide which of the beneficiaries will be paid money from the trust.
The insured person, assuming he or she is also the policy owner, would usually be a trustee, however, assuming the event that gives rise to a payout on the policy is the death of that person, they are obviously then no longer a trustee!
Even though the insured person cannot demand that any particular beneficiary or group of beneficiaries should be paid money from he trust, he or she can and should include in their will a 'statement of preference' that (e.g.) he or she wishes his or her spouse to receive the relevant policy’s proceeds if their spouse should survive them, but if their spouse does not survive them – perhaps by a number of days - the trust proceeds should be paid to surviving children.
Any such 'statement of preference' in the insured person’s will is not be binding upon the trustees of any life policies in trust, as the will dictates what should happen to the estate of a deceased person, and by placing a life policy in trust, the insured person is removing it from their estate.
Nevertheless, a 'statement of preference' would provide the trustees with valuable guidance as to the insured person’s wishes.
We recommend that you take advice from a suitably-qualified solicitor before including any such 'statement of preference' in your will. The solicitor would be responsible for the wording of your will.