Canada Life International has expanded its Isle of Man-based Dimensions range with the launch of the Dimensions Preference Discounted Trust Plan.
The plan combines the Dimensions Preference Account, a single-premium whole-of-life assurance policy launched in November 2007, with a bespoke discounted gift trust.
The idea of the plan is to shelter assets from inheritance tax while still allowing the owner to draw an income from them.
Canada Life International has chosen to use a bespoke discounted gift trust as it fears wrap trusts might fall foul of pre-owned asset tax (POAT).
John Cowley, head of technical services at Canada Life International, commented: “Our product totally conforms with the POAT legislation as well as Revenue guidance notes on discounted gift trusts. It was designed by a tax solicitor and signed off as being effective by Tax Counsel. It is our top priority to ensure that we attempt to minimise any risk regarding our products from a legislative point of view.”
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