A trust designed to protect a client's SIPP lump sum death benefits from a future IHT charge on the death of their spouse has been launched by Fidelity FundsNetwork.
The SIPP By-Pass Trust has been set up in response to adviser demand and will help them tackle the increasingly complex tax burden faced by their clients, Fidelity says.
The product works by ensuring lump sum death benefits do not become part of a client’s spouse’s estate.
The cash instead moves into the SIPP By-Pass Trust and is exempt from a potential 40% inheritance tax hit on the death of the partner.
Fidelity says the By-Pass Trust has also been designed to ensure the spouse can still benefit from the lump sum benefits during their lifetime.
Paul Kennedy, head of tax and trust solutions at Fidelity FundsNetwork, says: “Feedback from advisers combined with the success of our SIPP meant that developing the new SIPP By-Pass Trust was a natural extension to our range of Multi-Asset Trusts.
“In essence, it’s a very simple trust that can save a considerable amount of IHT. It’s likely to be particularly suitable for married couples although as ever with IHT planning, there are a number of technicalities of which the adviser should be aware.
“As we do with all our trusts, we have also produced a very comprehensive guide to accompany the trust itself.”
The new trust is the eighth addition to the range of FundsNetwork Multi-Asset Trusts, which include the FundsNetwork Bare Gift Trust and the FundsNetwork Discretionary Loan Trust.
For more information, click here or call 0800 995511.
020 7034 2636
Consider risk capacity
Via The Exchange
To continue under same brands
First phase of digital investment