A GLST has three components; the settlor, the trustee and the beneficiary. The Settlor is the person creating the trust — that’s you. The trustee you select manages the trust. And the trust beneficiaries you name will receive the trust assets upon your demise.

It is a Trust set up with the Group Life insurance policy (undertaken by the employer on behalf of the employee) as the asset. This allows the employee (Settlor of the policy) to designate the Trust as the primary beneficiary of the life insurance policy. Thus, upon the death of the employee, the insurance proceeds will be deposited into the Trust and held and distributed by the trustees to beneficiaries in accordance with the trust deed.

Most people name their spouse, children and/or grandchildren as beneficiaries of their Group Life Policy. However, if your trust is the beneficiary of your Group Life Policy, ARM Trustees will manage the funds and distribute to your beneficiaries.