Premiere Discounted Trust Account

For your clients who want an income and to reducing 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 trust also allows you to receive regular 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.

The Account combines a trust with the tax efficiency of investing through an Isle of Man provider, where the underlying investment can grow free of UK tax, with any personal taxation usually being deferred until any profits are brought back to the UK.

The Premiere Europe Discounted Trust Account offers a solution with a comprehensive range of investment options and a variety of charging options. The underlying investment bond can be linked to one or more lives assured or be written over a fixed 99-year term.

  • The tax efficient growth of an investment based on the Isle of Man for a UK resident means that any growth achieved in the Account is not subject to the UK tax, although it may apply when any profit is brought back into the UK.

  • The potential inheritance tax payable when you die could 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 Account can be denominated in one of a choice of currencies; Sterling, US Dollars and Euro.

  • 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 Account is true open architecture – this means that almost any collective fund from around the world can be used, as can cash deposits investment platforms or discretionary managers.

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 Premiere Discounted Trust Account will appeal to UK resident investors with at least £50,000 to invest 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.