Category: Group risk regulation · Reviewed by Tim Roche, Director · PI & Commercial · Last reviewed 2026-06-10
Trustees of a group life trust have a range of statutory, fiduciary and administrative responsibilities. The principal categories are (i) the statutory duty of care under section 1 Trustee Act 2000; (ii) fiduciary duties at common law including good faith, no conflict, no profit and the duty to account; (iii) administrative duties including record-keeping, accounts and reporting; and (iv) tax compliance, particularly for registered group life schemes which must report to HMRC on the Accounting for Tax Return.
Category: Group risk regulation Also known as: Group life trustee duties Statutory basis: Trustee Act 2000, s.1 Related concepts: Trustees of group life trust, Trustee Act 2000, Group life trust
Trustees must exercise the statutory duty of care — the duty to exercise such care and skill as is reasonable in the circumstances, having regard to (i) any special knowledge or experience the trustee has or holds himself out as having and (ii) where the trustee acts in the course of a business or profession, to any special knowledge or experience that it is reasonable to expect of such a person. The standard is therefore higher for professional/corporate trustees than for lay trustees.
Trustee Act 2000 sections 1–8 (statutory duty of care, investment, agents). Common law fiduciary duties as restated in modern cases such as Pitt v Holt [2013] UKSC 26 and Futter v Futter (consolidated). For registered schemes, additional duties under the Pension Schemes Act 1993, Pensions Act 1995 (e.g. duty to invest in accordance with the SIP), Pensions Act 2004 (TPR notifications) and Finance Act 2004 (HMRC reporting).
Specific group life trustee duties include: (i) holding the policy; (ii) keeping the trust deed and policy schedule securely; (iii) maintaining records of trustees, beneficiaries and nominations; (iv) exercising discretion on death; (v) paying benefits to the chosen beneficiaries; (vi) accounting and reporting; (vii) succession planning for trustee retirements; (viii) reviewing trust arrangements and considering trustee indemnity insurance.
A trustee notified of the death of an insured employee carries out the following process: (i) requests certified copy death certificate and other documentation; (ii) reviews the deceased’s expression of wish; (iii) makes enquiries of the employer’s HR team about the deceased’s circumstances; (iv) considers any potential beneficiary disputes; (v) exercises discretion at a documented trustee meeting; (vi) instructs the insurer to release the benefit to the chosen beneficiary; (vii) reports the payment to HMRC if registered; (viii) closes the file.
This entry is part of the Apex Insurance Wiki. Last reviewed by Matt Bartlett on 2026-06-10. Next review: 2026-12-10.
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