Way Investment Services has teamed up with La Mondiale Europartner to launch a life bond that will h...
Way Investment Services has teamed up with La Mondiale Europartner to launch a life bond that will help mitigate clients' inheritance tax.
The bond is domiciled in Luxembourg and will be available to UK-based intermediaries. The product will be invested in the risk-graded portfolio-style funds offered by Way fund managers, which investors will be able to use to help mitigate tax. It follows on from the Way unit trust version, which it launched in autumn 2003.
Investors can choose from three basic plans. The first two utilise trusts with retained reversionary interests for the donor. For the Way Flexible Inheritor Bond Plan, IHT can be mitigated by the investor gifting assets to their beneficiaries while still alive. The Way Discounted Inheritor Bond Plan works by investing in a portfolio style collective fund and utilising the Potentially Exempt Transfer rules to protect against future IHT liabilities. The Way Gift & Loan Inheritor Bond Plan is for the more cautious investor and is a contemporary version of the traditional Gift & Loan plans.
Minimum investment: £100,000
Commission: intermediary commission up to 7% initial, trail commission, 0.5% for cautious funds and 0.75% in other funds.
Paul Bruns and Elaine Parkes
3,000 left to transfer
Record numbers of people aged 90 plus
From 3 to 10 October