How many trustees are needed?

You’ll need to make sure that the trust always has at least two personal trustees or one corporate trustee.

Can the adult beneficiary be a trustee?

Yes, the adult beneficiary can be one of the two personal trustees.

Can I change the beneficiary?

No, you can’t change the beneficiaries once the trust has been set up. When the individual policies mature, the trustees will distribute the maturity proceeds 99% to the child beneficiary and 1% to the adult beneficiary, in line with the trust. If the adult beneficiary gifts their share of the maturity proceeds to the child beneficiary, this is a potentially exempt transfer (PET) for inheritance tax purposes.

How can the child beneficiary receive money from the trust before they’re 18?

Maturity payments from the policies in trust can be structured from the outset to meet specific requirements, like education fees. These maturities can be deferred, by the trustees, to a policy anniversary on or before beneficiary’s 18th birthday. At the anniversary before the child beneficiary’s 18th birthday, the trustees can defer some or all policies to any policy anniversary up to the child beneficiary’s 49th birthday. Once the child beneficiary is over 18 policies must mature and cannot be deferred.

What happens if the child beneficiary dies?

As the child is the sole life assured, the death benefit will be paid to the trustees, who’ll then distribute the investment.

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.

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

Fund Centre

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Get a tailored quote for this product from a financial adviser. To find one, visit Unbiased.

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.

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Frequently asked questions

No, you can’t change the beneficiaries once the trust has been set up.

When the individual policies mature, the trustees will distribute the maturity proceeds 99% to the child beneficiary and 1% to the adult beneficiary, in line with the trust. If the adult beneficiary gifts their share of the maturity proceeds to the child beneficiary, this is a potentially exempt transfer (PET) for inheritance tax purposes.
Maturity payments from the policies in trust can be structured from the outset to meet specific requirements, like education fees. These maturities can be deferred, by the trustees, to a policy anniversary on or before beneficiary’s 18th birthday. At the anniversary before the child beneficiary’s 18th birthday, the trustees can defer some or all policies to any policy anniversary up to the child beneficiary’s 49th birthday. Once the child beneficiary is over 18 policies must mature and cannot be deferred.

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