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Controlled Access Account

Make a gift into an absolute trust, and keep control of when the beneficiaries can access the trust fund, while potentially reducing your exposure to UK inheritance tax.

With the Controlled Access Account, you can make a gift into an absolute or bare trust arrangement for a child beneficiary with 99% entitlement and an adult beneficiary with 1% entitlement. The dual beneficial interest means the trustees can control when the beneficiaries access their share of the trust fund, even if they're an adult. The trustees can choose to allow maturing policies to be paid out to provide ongoing financial support while the child beneficiary is a minor, or defer maturities until the child beneficiary is an adult. The trust assets are invested to provide the opportunity for medium to long term capital growth and can be used for the beneficiaries’ ongoing financial support. Your gift into trust can also reduce your potential inheritance tax liability.

Bond Service Life Group Estate Planning

Is the Controlled Access Account right for you?

Use the account to provide ongoing financial support to the child beneficiary
Decide the age you would like the child beneficiary to have access to the account
Your gift into the trust is free from inheritance tax if you live for seven years after making the gift

What are the risks?

The value of the account can go down as well as up, and the trust beneficiaries may get back less than you invest. The way investments have performed in the past is not a guide to how they’ll perform in the future. Tax rules depend on individual circumstances and may change. Speak to your financial adviser if you need more information on tax.

This account could be right for you if:

  • You’re aged between 18 and 89

  • You want to make an absolute gift of at least £50,000 for named beneficiaries

  • You want to make an absolute gift but still maintain some control over the trust and the account

  • You want to have some control over when the beneficiaries can access the trust assets

  • You don’t want the beneficiary to cash-in the policy before it ends

This account may not be right for you if:

  • You have less than £50,000 to invest

  • You want to maintain ownership and access to your gift

  • You might want to change the beneficiary in the future

  • You might want to add more money to the trust at a later date

Controlled Access Account Case Study

Our case study illustrates the steps clients need to consider and how our Controlled Access Account can help.

Read

Tools and resources

Pension tax calculator

Find out the amount and percentage rate of income tax you’ll need to pay on any pension funds you withdraw.

Try calculator

Frequently asked questions