Trusts

Offering a wide range of trust solutions
Trusts are an excellent financial planning strategy and can benefit your clients and their families in many ways. They can be used in a variety of circumstances but they are legally binding, so selecting the right trust is key.

You may have a client who wants to

  • Provide for their family’s financial needs in a way that permits maximum flexibility for a period of years.
  • Make gifts now but are undecided how much to give each beneficiary.
  • Make sure that inheritance tax is minimised, regardless of whether they or their spouse/civil partner dies first.
  • Make sure that inheritance tax does not become a burden for their family when they die.
  • Do something about inheritance tax now, but be able to change their minds about who should receive what in future.
  • Make gifts to children or grandchildren in a tax efficient way.
  • Make a gift to a particular individual whilst retaining control over what happens to the capital if that individual dies before they do.
  • Gift money to a particular individual but are worried about what may happen to the gift if that individual gets divorced/dissolves their civil partnership.

A trust can be used to meet these and many other objectives.

Canada Life has many years’ experience designing and providing trust solutions to help with preserving wealth and effectively passing it on to future generations.

  • A settlor-interested trust which removes the need for probate on the underlying investments as the bond is owned by the trustees, not your client, allowing the bond or the proceeds to be paid to the heirs without the need for probate.
  • It is not suitable for inheritance tax planning.
  • Can be used with one of Canada Life’s UK or international investment bonds.
  • Bare and discretionary versions are available for those looking to make an outright gift.
  • The underlying investment can be in one of Canada Life’s UK or international investment bonds.
  • Can also be used with a Whole of Life plan.

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.

  • Bare and discretionary versions available.
  • £10 initial gift followed by a larger, interest-free loan to the trustees.
  • The trustees can invest the money in one of Canada Life’s UK or international investment bonds.
  • Includes limited liability for the trustees.
  • Bare and discretionary versions available.
  • For those who want to gift money and receive fixed regular payments from the trust for the rest of their life or until the trust fund is exhausted.
  • Potential for an immediate reduction in the value of the settlor’s estate.
  • The underlying investment can be in one of Canada Life’s UK or international investment bonds.
  • For those who want to gift money to a discretionary trust and receive flexible payments as and when they are required, within certain limits.
  • Trustees can distribute money to the beneficiaries during the settlor’s lifetime.
  • The underlying investment is in an open architecture Canada Life International investment bond.
  • A specially designed bare trust solution specifically designed for grandparents who want to make provision for grandchildren, controlling the access after the beneficiary’s 18th birthday.
  • The underlying investment is in an open architecture Canada Life International investment bond.
  • Designed for individuals who are not UK-domicile, but are likely to be in the future, money can be invested in an offshore bond to reduce exposure to UK inheritance tax.
  • The underlying investment can be in one of Canada Life’s international investment bonds.

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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.