Category: Group risk regulation · Reviewed by Jake Leat, Associate Director · Last reviewed 2026-06-10
Trustees of a group life trust are the persons or corporate body holding the legal title to the group life insurance policy on trust for the benefit of the employees and the employees’ nominated beneficiaries. The trustees exercise discretion to distribute lump sum benefits on the death of an insured member, owing fiduciary duties to the trust beneficiaries under both statute (principally the Trustee Act 2000) and common law.
Category: Group risk regulation Also known as: Group life trustees Statutory basis: Trustee Act 2000 Related concepts: Trustee responsibilities group life, Trustee Act 2000, Group life trust, Master trust group life
Trustees of a group life trust may be: (i) individual trustees, normally directors or officers of the employer; (ii) a single-employer corporate trustee; or (iii) the corporate trustee of a master trust operated by the insurer or an independent trustee firm. Each trustee category carries different governance, succession and risk implications for the employer and the insured population.
Trustees owe statutory duties under the Trustee Act 2000 (duty of care, investment duty) and common law fiduciary duties (good faith, no conflict, no profit, account). They must comply with the trust deed and rules and exercise discretion with regard to the trust’s purposes. Negligent or improper trustee conduct can give rise to personal liability under the Trustee Act 1925 and at common law.
Master trust trustees have the advantage of professional governance, succession arrangements, and trustee indemnity insurance. Single-employer individual trustees should be appropriately briefed, have clear delegation arrangements, and consider taking out trustee indemnity insurance. Trustees should keep minutes of decisions, particularly decisions distributing benefits on death.
On the death of an employee, the corporate trustee of the master trust EGLP reviews the deceased’s expression of wish form, conducts standard checks on identity of beneficiaries, considers any updated circumstances notified by the employer, exercises discretion to pay the lump sum to the spouse, and pays the benefit within 30 days. The decision is recorded in trustee minutes.
This entry is part of the Apex Insurance Wiki. Last reviewed by Matt Bartlett on 2026-06-10. Next review: 2026-12-10.
Apex Insurance Brokers Limited. Authorised and regulated by the Financial Conduct Authority, FRN 724952. Registered in England and Wales, Companies House 07014570. This entry provides general information about UK insurance concepts and is not regulated advice. Consult your insurance broker on your specific position.
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