Controlled Access Account

A tax-efficient way of passing money down a generation

Sometimes it can be difficult to find the right way to pass money to beneficiaries below the age of 18. While you will want this done as tax-efficiently as possible, it can also be important to retain control of the investment until you feel the beneficiary is older and responsible enough to control the money. Many arrangements will also allow the beneficiary to access the money when they are 18 which is not always desirable.

The Controlled Access Account from Canada Life International is an innovative trust solution that has the efficiency of an absolute gift, meaning that the original amount is not subject to inheritance tax after a period of seven years, and gives the trustees control of when any benefits are paid.

Prior to the beneficiary’s 18th birthday the money can be used for their benefit, for example to pay education fees. The trustees can also restrict access past the beneficiary’s 18th birthday and can make sure that money is available at certain points in the future.
As the name suggests, the Controlled Access Account provides the trustees control over the access that the beneficiary has.

  • You can invest any amount, without any charge to inheritance tax, and the amount gifted can be outside of your estate and completely free of inheritance tax after seven years.
  • Any growth on the investment from outset is not part of your estate.
  • Payments from the trust can be structured in a flexible way, from outset, to meet specific requirements such as school and education fees. Where these payments are not required, they can be deferred by the trustees prior to the beneficiary’s 18th birthday.
  • Prior to the beneficiary’s 18th birthday the trustees can link future payments to when the beneficiary reaches certain ages.
  • 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 regime. Tax may apply when any profit is brought back into the UK.

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 meaning almost any collective fund from around the world can be used, as can any of the 40 or so investment platforms or 150+ discretionary managers that we already have agreements in place with.

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

The Controlled Access Account will appeal to UK residents who want to make a lump sum gift into a trust for the benefit of a relative who is a minor, such as a grandchild, niece or nephew.

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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.