Isle of Man-based Boal & Co has announced the launch of a "Spousal Bypass Trust". The trust ensures that QROPS death benefits are instead paid out to a trust, completely separate from the spouse's taxable estate.
Commenting on the launch, Managing Director Gary Boal explained: “One of the many benefits of QROPS (overseas pension transfer schemes) compared with UK pensions is the ability to bestow a pension fund on death. Scheme members who retire abroad are not subject to the 55% UK tax charge which applies to members with UK pension schemes." According to Boal “Member payment charges”, including the 55% special lump sum death benefits charge, are not applicable to members of QROPS schemes unless the member is UK-resident at the time of payment, or has been UK-resident in any of the 5 complete t...
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