Standard Life is to launch a discounted gift trust as the first product from its new Dublin operatio...
Standard Life is to launch a discounted gift trust as the first product from its new Dublin operation early in 2006.
The insurer applied to the Irish regulator in March to establish a Dublin business and this will be used primarily to sell offshore policies back into the UK. Standard Life launched a UK onshore Discounted Gift Plan last month.
Standard Life has a domestic company in Ireland selling pensions, protection and investment products and already markets products to continental Europe as well as having operations in China and India. In Germany, Standard Life sells with-profits policies and group and individual pensions from the UK under the third life directive.
Other insurers said they have enjoyed strong demand for offshore discounted trust schemes this year. Under a discounted gift scheme, an investor places assets into a trust and receives a set percentage a year as income.
Typically, this will be 5% a year as this is the maximum withdrawal before income tax is levied. If the settlor lives for more than seven years, the assets in the trust are not subject to IHT.
Discounted gift trusts are the most popular offshore IHT schemes at the moment, say insurers, because of many people's need to continue to receive an income while mitigating IHT.
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