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Wealth Preservation Trust
Gift your money with access to yearly payments
How the trust works
A trust is a way of managing assets (such as money or investments). It’s a legal arrangement where someone (the settlor) puts assets into a trust and appoints a person or group of people (the trustees) to look after the assets for the benefit of a person or group of people (the beneficiaries). There are different types of trusts, which have different features and benefits.
Our Wealth Preservation Trust
With this trust, you invest into an investment bond. This can either be our Wealth Preservation Account, with investments based in the Isle of Man, or our Wealth Preservation Europe Account, with investments based in Ireland. You then transfer your chosen investment bond account into the trust. The accounts cannot be set up in joint names.
You can get yearly payments from the trust but cannot access the investment at any other time. This means that the trust could help to reduce any inheritance tax that needs to be paid when you die.
Accessing your money
With this trust, you can only receive money from the investment once a year. You can’t access the investment at any other time.
A discretionary trust
The Wealth Preservation Trust is a discretionary trust. This means that decisions about who benefits from the trust and when, are made at the trustees’ discretion.
So, although you can receive yearly payments from the trust, all other benefits – such as death benefits and the option to cash-in – must be granted by the trustees.
Products that can be placed in this trust
The Wealth Preservation Trust can only be used with the following products:
- Wealth Preservation Account (through the Isle of Man)
- Wealth Preservation Europe Account (through Ireland)
Tax
Income tax
If you withdraw money from an investment bond in our Wealth Preservation Trust, you may need to pay income tax. To find out more about tax and how it may affect you, speak to your adviser.
Inheritance tax
Once the investment has been in the trust for seven years, it moves out of your estate and you won’t need to pay inheritance tax on it.
Tax rules depend on individual circumstances and may change. Speak to an adviser, if you need more information on tax.
Next steps
Adviser support
Find answers to commonly asked questions, helpful links, tools and contact details.
