Wealth Preservation Europe Account

Combining retirement and estate planning

As investments into pensions and ISAs are capped, limiting the amount you can pay in, and pensions also have a lifetime limit on how much can be held before tax charges apply, the CanTrust Wealth Preservation Europe Account from Canada Life International Assurance (Ireland)  offers an alternative way of supplementing income. It also helps to reduce any potential inheritance tax payable when you die.

By using a trust solution and surviving for seven years, the amount you invest is outside of your estate – reducing the inheritance tax liability on your estate. You are also able to take flexible payments from the trust and the trustees can make payments to your chosen beneficiaries if required.

  • The Account can provide flexible yearly payments to supplement any income you receive, such as from pensions.
  • Any growth on the investment is not part of your estate and therefore is not liable to inheritance tax when you die.
  • The tax efficient growth of an investment based in Ireland for a UK resident is similar to that of a pension or ISA as any growth achieved in the Account is not subject to the UK tax regime. UK tax may apply when any profit is brought back into the UK.
  • No VAT on any fees payable to discretionary investment managers.
  • The trustees can make payments to other people if required, for example for a grandchild’s education fees.

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 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 investment managers.

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

The CanTrust Wealth Preservation Europe Account will appeal to UK resident clients who have a potential IHT liability and are willing to make a lump sum gift into a trust, whilst retaining access to yearly payments from the trust and giving the trustees the ability to make payments to the chosen beneficiaries.

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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.