International Portfolio Bond Discounted Gift Trust

For those who want an income and to reduce their inheritance tax liability

A discounted trust account is a way of removing money from your estate and reducing the potential inheritance tax that your beneficiaries will have to pay when you die. The underlying trust also allows you to receive payments from the investment - these payments will be set at outset and can be paid monthly, quarterly, half-yearly or yearly to supplement your income.

As the underlying investment is held with Canada Life International Assurance (Ireland), based in Dublin, the trustees can benefit from a tax-efficient investment, free of UK tax. Also, the payments you receive can be paid on a tax-deferred basis, usually without any immediate income tax liability.

The International Portfolio Bond combined with a Discounted Gift Trust offers a solution with a comprehensive range of investment options and a variety of charging options.

  • The tax efficient growth of an investment based in Dublin for a UK resident means that any growth achieved in the Bond is not subject to the UK tax regime. Tax may apply when any profit is brought back into the UK.
  • The potential inheritance tax payable when you die will be reduced immediately, with a further reduction after you have survived seven years from the original investment.
  • After you die, the value of the trust will be available. Depending on the type of trust used, the trustees can pay these funds out to the chosen beneficiaries or maintain the trust and pay out benefits as and when they choose.
  • The ability to use multiple investment solutions at any time, allowing investors to mix and match between funds, cash deposits, discretionary managers and investment platforms.

The Bond is true open architecture – this means that almost any collective fund from around the world can be used, as can cash deposits, investment platforms and discretionary managers. The list of platforms and discretionary managers is always evolving and can be added to if required.

It is possible to use multiple funds, platforms and discretionary managers and the investments can be changed at any time.

The value of investments can fall as well as rise and you should speak to a professional adviser to ensure that any investment is suitable for you.

The International Portfolio Bond combined with a discounted gift trust will appeal to UK investors who want to combine a tax-efficient investment and reduce the inheritance tax liability on their estate whilst receiving regular payments to supplement their income.

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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.