Policies effected under S11 Married Women’s Property Act
(MWPA) 1882 create trusts only in favour of the spouse or civil
partner (by virtue of s.71 Civil Partnership Act 2004) (
IHTM11032) and children of the assured.
Originally policies effected under S2 Married Women's
Policies of Assurance (Scotland) Act 1880 created trusts only in
favour of the wife and children of the assured, but under the MWPA
(Scotland) (Amendment) Act 1980 it is now possible for either
spouse or civil partner (by virtue of s.71 Civil Partnership Act
2004) to effect a policy under Section 2 of the 1880 Act for the
other.
In each case "children" includes children adopted under an
Adoption Order made under para 3 Sch 1 (England) and para 1 Sch 2
(Scotland) Children Act 1975 and illegitimate children if the
policy was effected on or after 1 January 1970.
In general any options the assured has under the policy will
only be exercisable for the benefit of the trust. So if the policy
is surrendered the trust will attach to the proceeds - see Re
Equitable Life Assurance Society of United States v Mitchell (1911)
27 TLR 213 and Re Fleetwood's Policy [1926] I Ch 48.
