How the Trust Works
What you need to do
During the sale of the funeral plan
You will need to record information from the planholder which will help identify them and to provide the information that the actuary, auditor and trustees will require.
These typically included date of sale, policy number, contact information, date of birth, National Insurance number, type of funeral package and payment amounts. Our bespoke software can be used to ensure all key fields are captured.
This information helps the actuary estimate when the funerals are likely to occur and hence the funds required by the trust to help provide for them. You would then issue terms and conditions, contract, certificate of entitlement and legal notices.
You will need to ensure either a lump sum payment or regular instalments are collected from the planholder as agreed.
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Weekly activity
Pay across funds collected less any approved deductions to the trust bank account.
Deductions include release of surplus funds, approved funeral claims or the set-up administration fee where one is charged.
Set procedures need to be followed for every funeral claim including verifying that the deceased is the planholder. Part of these procedures will be to immediately notify the trustees when a claim arises. This is necessary so that the trustees can ensure adequate funds are available to pay the funeral cost.
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Quarterly activity
The Investment Manager will review and report on the funds performance.
Plan provider provides to trustees:
- The reconciliation of funds received and paid across;
- Reconciliation of active plan numbers;
- Any issues i.e. data breaches, reputational issues or complaints received (similarly the trustee would report any that they are aware of).
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Annual events
The trustees will ensure annual accounts for the trust are prepared, audited and distributed.
The trustees will write an annual report to accompany the audited accounts. As part of the report, the trustees will cover the governance of the trust.
The trustees ensure data is passed to the actuary so they can assess the adequacy of funds held by the trust. The actuary performs a full formal valuation every 3 years.
The trustees and plan provider will review with the actuary the assumptions which the actuary proposes to use for the valuation.
Pay taxes
An annual meeting with the plan provider and the trustees (and in some instances the investment manager and/or the actuary).
The plan provider renews insurance.
Ongoing
Dealings with HMRC and other relevant authorities.
Providing data required about the trust fund or the trustees as required by any regulatory authority.
In the event of an adverse actuarial report taking action in accordance with FPA and other relevant rules.
Dealing with complaints and notifying all relevant parties.
Pay from trust assets agreed expenses and other allowable disbursements. In general the costs of running the trust including the trustees’ fees will be met by the plan provider, unless it is agreed within the terms of the trust that the trust should meet the expense in question.
Pay any surplus in accordance with the trust document and applicable rules to the funeral provider.
Disclaimer
The trustees’ function is to safeguard the assets backing the funeral plan guarantee. Whilst part of our role is therefore to contribute to the integrity and reputation of the plan, we are not involved in the marketing of plans and The Trust People cannot therefore comment on this aspect of the plans, which is the responsibility of the plan provider; nor are we responsible for monitoring the provider’s compliance with regulations.
The plan provider is responsible for arranging insurance cover against fraud or negligence losses for the trust fund. Confirmation of the policy may be required annually, on renewal.
To protect your business, all trustees should be happy to agree to a non-disclosure agreement to ensure all your sensitive business information is safeguarded.
The Trust people are fully compliant with FCA (Financial Conduct Authority) Regulation and GDRP Data Collection & Protection act 2018
The Trust People Limited, Bollin House, Bollin Link, Wilmslow, Cheshire, SK9 1DP
trustpeople.co.uk is a trading name of The Trust People Ltd. | Company Number 11464050. Data Protection Number ZA467190.