Will and life insurance trust - who pays off the mortgage and how is it split?

[Pieface]

Hi folks, I think might be a not uncommon occurrence, but 1st time for me. OK. I live with my partner and I have one adult only child who is self sufficient and lives 100 miles away, so not in the family home, but my partner is not his mother. I own a mortgaged property where everything is in my sole name, including the mortgage and all the bills. I want to look after both of them in the event of my death, as best I can, so I have written a will whereby the house (My only significant asset) would be split 50/50 between them both. I have also taken out a life insurance policy to cover any outstanding mortgage, placed it in trust with both of them as trustees but my partner as beneficiary, as she lives in the family home so would be in her best interests to pay the mortgage off ASAP. My son is also my executor to my will. My questions are based around the technicalities of how everything happens in the event of my death, I don't want to leave the possibility of dispute. I would hope none of the following scenarios would occur, but I'd like to leave things definitive to avoid any possibility. My questions are, if I died, either my partner or son could action the insurance claim to cover the mortgage (Both trustees), but if my partner (Benificiary) decided not to pay it, where would that leave things? Could she keep the money and incur debt on the property? Where would that leave my son? Does that make sense?

[des8]

As placing a life assurance policy in Trust can be a complex issue, did you seek independent professional advice about it?

If you wanted the proceeds to pay off the mortgage the trust should have been set up so the beneficiary is the lender or a person you have assigned to pay up the mortgage with the lender.

From your post it seems your partner is the beneficiary.
The policy monies will be paid into the trust, and the trustees will then pay the beneficiary.
Does the trust stipulate what the proceeds must be used for?

[PBr]

Just to add, there are various types of trust you can set up, some with specific purpose, others that allow discretion to the trustees (usually more efficient for IHT purposes). You might want to consider appointing independent trustees.

It also makes sense to provide a separate letter stating your clear intentions. This isn't binding but would be referred to by independent trustees (and courts, I believe).

I think it would make sense to take financial advice or, at least, ask the life company about the different trusts they provide. L&G has a tool you might find useful*https://www.legalandgeneral.com/exis...ol/select.html

[Pieface]

Thank you both for your time and replies. Obviously I didn't research this enough. I want made aware that I could stipulate the reason for the policy within the trust itself. I have explained the reasons for it to both of my beneficiaries but I would feel happier to leave things more definitive. I'll think through your replies and make some enquiries to Aviva, who the policy is with. Thanks again