Wealth Preservation 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 Account from Canada Life International can offer 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 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 tax efficient growth of an investment based on the Isle of Man 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.
  • Provides flexible 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 trustees can make payments to other people if required, for example 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 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 CanTrust Wealth Preservation 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 payments from the trust and giving the trustees the ability to make payments to the chosen beneficiaries.

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Wealth Preservation Europe Account

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Offshore Savings Account

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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.