Wealth Preservation Account

Combining retirement and estate planning

Clients that have a lump sum to invest for a potential future income may have more to invest than the annual allowance or have already funded their pensions to the lifetime allowance.

The CanTrust Wealth Preservation Account is a trust-based solution offering investors the ability to take regular payments from the trust to supplement their income, whilst offering inheritance tax efficiency – the original investment is outside their estate after seven years and growth is outside from day one.

Unlike a pension, payments can be made to chosen beneficiaries during the settlor’s lifetime as needs arise.

  • Provides flexible payments to supplement your client’s income.
  • The tax efficient growth of an investment based on the Isle of Man for a UK resident is similar to that of a pension or ISA as 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.
  • IHT efficiency with the amount invested being outside of the estate after seven years and the growth from day one.
  • The trustees can make payments to other people if required, for example for a grandchild’s education fees.

The value of your savings can go down as well as up and the client may not get back the full amount they invested.

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 CanTrust Wealth Preservation Account will appeal to UK resident clients who have a potential IHT liability and are willing to make a lump sum gift into a trust, whilst retaining access to payments from the trust and giving the trustees the ability to make payments to the chosen beneficiaries.

There are three packs of literature available for the Wealth Preservation Account; the Planning Pack, Quote Pack and Welcome Pack. 

Interested in More? Why not Look At...

Wealth Preservation Europe Account

Individuals gifting money into this unique trust arrangement can reduce their potential liability to inheritance tax

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Offshore Savings Account

Helping clients save for retirement beyond the allowances.

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"After talking through her objectives with her professional adviser she invests £300,000 into a WPA to reduce tax and have periodic payments from the trust."
Joan

Contact us to find out more

United Kingdom
0345 606 0708

International
01624 820200

United Kingdom
customer.services@canadalife.co.uk

International (Isle of Man)
focus@canadalifeint.com

International (Dublin)
distributionsupport@canadalifeint.ie

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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.