Due to adverse weather conditions the Canada Life International Isle of Man office is currently closed. Please email us on focus@canadalifeint.com and we will respond as soon as we are able.

Delta Discounted Trust Account

For your clients who want an income and to reduce their inheritance tax liability

Investing money into a trust can sometimes mean that the client loses access to the income that a lump sum can offer. In some instances this income may be valuable, for example if it is supplementing income later in life.

The Delta Discounted Trust Account from Canada Life International allows for your clients to invest a lump sum of money and to receive regular payments from the trust. These payments can be made monthly, quarterly, half-yearly or yearly depending on the client’s circumstances, and as these payments utilise the tax deferred withdrawal facility from an investment bond, there is usually no immediate personal tax liability.

The capital value of the income stream, called the discount, is outside of the client’s estate immediately with the balance of the payment being a chargeable lifetime transfer or a potentially exempt transfer depending on what type of trust is used. This means that the whole investment can be outside the client’s estate after seven years and the growth is outside from outset.

The Delta Discounted Trust Account offers a low cost solution with a selected range of investment options and a variety of charging options.

  • 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. Tax may apply when any profit is brought back into the UK.
  • There is unlimited free switching between the funds available allowing you and your client to restructure the investment as required.
  • After the settlor dies the value of the trust will be available. Depending on the type of trust, the trustees can pay these funds out to the chosen beneficiaries or maintain the trust and pay out benefits as and when they choose.

The fund range available includes over 150 funds managed by Canada Life’s own award winning investment team and other well-known and respected investment companies such as Jupiter, Investec, M&G and so on.

The funds being invested in can be changed at any time without charge.

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 Delta Discounted Trust Account will appeal to UK investors who want to combine a tax-efficient investment and reduce the inheritance tax liability on their estate whilst receiving regular payments to supplement their income.

Interested in More? Why not Look At...

Dimensions Preference Discounted Trust Account

For clients who want an income and to reduce their inheritance tax liability

Wealth Preservation Account

Combining retirement and estate planning

More

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.