Standard Life is rolling out additional inheritance tax trust wrappers around two of its bonds to give policyholders more flexibility as to when they tie in their assets.
Wrapped around the capital investment and distribution bonds, Standard Life’s key selling point is investors can keep track of all of the assets they gift to other individuals by keeping a log or trustee record of any allocations made under the Gift Plan, including investments or allocations placed through rival providers, so beneficiaries – whose names can be changed at any time –have easy access to the information needed when the estate is settled.
This IHT trust package gives the holder the option of becoming a trustee and retaining overall control of any money but allows them the space to make new gifts at any time, as well as establishing a single or joint settler trust.
The Access and Option Plan essentially acts as a ‘mini will’ which allows policyholders to set the trust up and then access income and capital through a capital investment bond - as well as present immediate payout at the death of the holder – but delays the start of the IHT potentially exempt transfer ‘clock’ and any potential benefits until a time of their choosing, and control investments by the terms of the trust.
Both of these trusts sit alongside Standard Life’s existing Loan Plan trust, which allows the holder to retain an income through “loan repayments” of the trust, placing the growth of the bond outside the estate for IHT purposes, and only includes any loan amount remaining at the policyholder’s death.
Information in the launch packs for both trusts includes case studies and examples of client plans and decision trees to assess which might be the most appropriate option for a client.
The launch of the new IHT trusts is accompanied by allocation rate changes to the distribution capital investment bonds, which both start with a minimum investment of £5,000.
If you have any comments you would like to add to this story or would like to speak to its author about a similar subject, telephone Julie Henderson on 020 7968 4571 or email [email protected].IFAonline
Vitality at Work scheme
Reporting to Steve Hill
Appointed on 19 September
Plans to double size in five years
Unnamed company valuation reduced