tax and jurisdiction
Four new trusts services have been added to the Selestia offshore range, as well as a new cash fund paying 4% gross interest and new sales aids for intermediaries.
The excluded property trust is targeted at non-UK domiciled individuals who are resident in the UK. By placing non-UK assets in an excluded property trust, non UK-domiciliaries can legitimately avoid UK inheritance tax on those assets should a change in domicile status be triggered.
The probate trust is a flexible power of appointment trust. The settlor has access to both capital and growth and there are no restrictions on drawing income. The trust is not so much an inheritance planning vehicle but is useful in alleviating probate requirements.
A flexible loan trust has also been introduced and can be used for inheritance tax planning as the original capital is a loan and not a gift. The value of the un-reclaimed loan remains within the estate, but any growth falls immediately outside.
The discounted gift trust is for individuals or couples who wish to gift capital to children but retain access to a portion of the income. It enables the settlor to make a gift for IHT purposes but where the value of that gift is discounted. Furthermore, investment growth in excess of the settlor's income is free of inheritance tax. To assist in the calculation of the discounted gift, Selestia offers a free underwriting service for the settlor.
A new Selestia cash fund has been added paying 4% interest gross to meet an increasing demand for fixed-term deposit investments, and can be used on separate individual, join or trust, corporate applications.
New sales aids on all the above will be distributed to intermediaries on request.
Selestia is an IFA-focused investment business backed by Old Mutual Plc ' a FTSE 100 company. Selestia currently offers 385 'best of breed' funds managed by 47 fund managers.
The company offers services such as a wide range of product wrappers, daily updated online client portfolio valuations and automatic portfolio rebalancing, among others.
Paul Bruns and Elaine Parkes
3,000 left to transfer
Record numbers of people aged 90 plus
From 3 to 10 October