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 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 Premiere Europe Discounted Trust Account (the ‘Account’) offers a solution with a comprehensive range of investment options and a variety of charging options. The underlying investment 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 UK 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.
  • Investors can appoint fund advisers on a discretionary or non-discretionary basis, with fees being paid outside of the 5% withdrawal facility.
  • The capital redemption option means that you do not have to select specific lives assured and the policy will be written over a fixed term.

The Account is true open architecture – this means that almost any collective fund from around the world can be used, as can cash deposits and any of the 40 or so investment platforms or 150+ discretionary managers that we already have agreements in place with. 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 Premiere Discounted Trust Account 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.