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 of the UK from being included in your estate for inheritance tax purposes if you are currently not and never have been UK-domiciled.
If you become UK-domiciled after the trust is established, and do not add property to the trust, then these assets are excluded and remain outside of your estate.
Once set up, you can benefit from payments from the trust, and the trust will continue until all assets are given to the beneficiaries.
Accessing your money
With our Excluded Property Trust, you can be a beneficiary and the trustees can access the investment at any time to make withdrawals for the beneficiaries.
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
Income tax may need to be paid when a chargeable event gain arises on an investment bond held in an Excluded Property Trust. For more information on tax and how it might affect you, please talk to your financial adviser.
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 have been UK-domiciled in the past and set up an Excluded Property Trust while domiciled in another country, the excluded property status will be lost if you return to the UK.