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Wealth Preservation Trust

Gift your money with access to yearly payments

Barry's story

Moving money from an ISA into a trust

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About Barry                 

Barry is 74 and in good health. He has two sons. His wife Joyce, recently died leaving everything to him. He and Joyce paid the maximum amount into their cash ISAs every year. This means that Barry now has £150,000 in his cash ISA, while his assets total £1.5m.

Barry’s goals

Barry wants to invest his money and leave his sons an inheritance. Although, he doesn’t want them to have to pay a large inheritance tax bill when he dies. Barry also wants to be able to access his savings in case of an emergency.

Choosing our Wealth Preservation Trust

With the help of an adviser, Barry decides to place the £150,000 from his ISA into our Wealth Preservation Account. When Barry’s money has been in the trust for seven years, it will move outside of his estate. This means that there’ll be no inheritance tax to pay on it.

Accessing the investment

When you invest in a Wealth Preservation Account, the investment buys a series of life assurance policies. These policies have maturity dates and the maturity benefit is automatically paid back to you, through the trustees. The trustees can defer these maturity dates if some or all of the maturing benefit isn’t needed.

Flexible access to money

With this trust, Barry can access money each year, although he may pay income tax on any investment gain. His children, grandchildren and great-grandchild can also receive payments, either before or after Barry’s death, with the permission of the trustees.

No inheritance tax to pay

Barry lives for another 9 years. The trust moved out of Barry’s estate after seven years, so his sons didn’t need to pay any inheritance tax. This resulted in a saving of £60,000.

What are the risks?

The value of your investment can go down as well as up and you may get back less than you invest. The way investments 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 an adviser, if you need more information on tax.

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