Not upheld: failure to place policy in Trust complaint against Zurich Assurance Ltd

Decision detail

Summary

Mr R complained that Zurich Assurance Ltd failed to place his Hambro Adaptable Life Plan into Trust when it commenced in 1984 and again failed to rectify this in 1994 when he requested it. The ombudsman examined evidence from the 1984 application and a 1994 call note, finding no documentation supporting that Mr R ever completed a Trust form. On the balance of probabilities, the ombudsman concluded it was unlikely Mr R completed and submitted a Trust form at either time. The ombudsman determined that Zurich's offer to allow Mr R to place the policy in Trust now by completing and returning a signed Trust form is fair and reasonable, as a Trust Deed requires Mr R's legal agreement and signature. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman applied the balance of probabilities test to determine whether Mr R completed a Trust form in 1984 or 1994. The evidence from the application in 1984 (unchecked boxes, no mention on Schedule) and the 1994 call note (indicating Trust forms were to be sent) both suggest no Trust was ever established. The ombudsman noted that Mr R kept detailed records of communications, so he would likely have retained a Trust Deed had he completed one. Even if Zurich had made an error, the fair resolution is to allow Mr R to place the policy in Trust now, which Zurich has already offered.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website