Controlled Access Account

The modern alternative to an accumulation and maintenance trust

The Controlled Access Account is designed specifically for a gift to a trust for a grandchild where the donor wants the money to be used for the child’s benefit, for example to cover the cost of education. 

A lump sum is gifted into a bare trust with a child beneficiary so it can reduce your client’s inheritance tax liability whilst allowing payments to be made to the beneficiary. Unlike a conventional bare trust where the beneficiary can access the trust assets from age 18, this innovative solution from Canada Life International means that the trustees can control any payments from the trust whilst the child is under the age of 18 and can restrict access after the age of 18.

The trustees can control the access the beneficiary has to the trust assets, allowing them to decide when the beneficiary will receive any payments.

Click here to view the product related Key Information Document

  • The gift to the trust is a potentially exempt transfer. This means that the amount gifted is outside the donor’s estate and free of inheritance tax after seven years.
  • Any growth on the investment from outset is not part of the donor’s estate.
  • Payments from the trust can be structured, from outset, to meet specific requirements such as school and education fees and can be deferred by the trustees prior to the beneficiary’s 18th birthday.
  • The tax efficient growth of an investment based on the Isle of Man for a UK resident means that any growth achieved in the Account is not subject to the UK tax regime. UK tax may apply when any profit is brought back into the UK.

The value of investments can fall as well as rise and you should speak to a professional adviser to ensure that any investment is suitable for you.

The Account is true open architecture meaning almost any collective fund from around the world can be used, as can any of the 40 or so investment platforms or 150+ discretionary managers that we already have agreements in place with.

It is possible to use multiple funds, platforms and discretionary managers and the investments can be changed at any time.

The Controlled Access Account will appeal to UK residents who have a potential IHT liability and want to make a lump sum gift into a trust for the benefit of a relative who is a minor, such as a grandchild, niece or nephew and being able to control when they can benefit.

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This website is for UK professional advisers only and is not approved for use by private customers.

Canada Life Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.

Canada Life International Limited and CLI Institutional Limited are Isle of Man registered companies authorised and regulated by the Isle of Man Financial Services Authority.

Canada Life International Assurance (Ireland) DAC is authorised and regulated by the Central Bank of Ireland.

Stonehaven UK Limited and MGM Advantage Life Limited, trading as Canada Life, are subsidiaries of The Canada Life Group (U.K.) Limited. Stonehaven UK Ltd is authorised and regulated by the Financial Conduct Authority. MGM Advantage Life Limited is authorised and regulated by the Financial Conduct Authority.