Product Estate Planning Excluded Property Trust 680X392

Excluded Property Trust

Shelter your overseas assets from inheritance tax

How a trust works

A trust is a way of managing assets (such as money or investments). It’s a legal arrangement where someone (the donor or settlor) puts assets into a trust and appoints a person or group of people (the trustees) to look after them, for the benefit of a specific person or a group of people (the beneficiaries). There are various types of trusts, with different features and benefits.

Our Excluded Property Trust

This trust gives you a way to protect investments held outside the UK, while you are non-UK domiciled, so if you become UK-domiciled the excluded property in the trust won’t be subject to UK inheritance tax.

With this trust, you’ll invest in one or more of our investment bonds and place them into the trust while you’re non-UK domiciled, or not yet deemed UK-domiciled. The trust can be set up in joint names if two people are gifting the money.

Once the trust is set up you can benefit from payments from the trust. Also there’s no inheritance tax to pay, as long as the trust holds excluded property. The trust will continue until the investment is given to the beneficiaries.

Once you do become UK-domiciled or deemed UK-domiciled, you can’t place any other investment into the trust.

Accessing your money

With our Excluded Property Trust, the trustees can access the investment at any time to make withdrawals for the beneficiaries and you can be a beneficiary.

A discretionary trust

Our Excluded Property Trust is a discretionary trust which means that the trustees manage the trust, make decisions about who’ll benefit from the trust (which can include you), how much money they’ll get and when.

Products that can be placed in this trust

You can use the following investment bonds with our Excluded Property Trust. Click on the links below to explore each product.

Premiere accounts

Delta Account

Offshore Savings Account

Elite and Prestige Account

Tax

Income tax

Income tax may need to be paid when money’s withdrawn from an investment bond held in an Excluded Property Trust. For more information on tax and how it might affect you, please talk to your adviser.

Inheritance tax

If you place an investment into our Excluded Property Trust before you’re UK domiciled or deemed UK-domiciled, then there’ll be no inheritance tax to pay on it. If you add an investment to the trust after you’re UK domiciled or deemed UK-domiciled then inheritance tax may need to be paid.  

If you were born in the UK and set up an excluded property trust while domiciled in another country, the excluded property status will be lost when you return to the UK. 

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