Scottish Life International Introduces Trust to Avoid Need for Probate
Thursday, 15 March 2007
Scottish Life International has introduced a new draft trust - the Bare Trust For Settlor - designed to assist investors avoid the costs and delays associated with obtaining Probate in the Isle of Man. Policies issued by Scottish Life International are Isle of Man assets and should an individual policyholder die, Isle of Man Probate will be required before ownership of the policy can be changed or payment of the policy proceeds made.
By placing the policy in a simple trust, the individual policyholder is replaced as owner by the trustees and thus there is no need for Isle of Man Probate to be obtained on the policyholder's death.
Alan Blackburne, Scottish Life International's Head of UK Sales commented:
"Traditionally Isle of Man Probate was avoided by use of a probate trust. However the changes to the inheritance tax treatment of trusts enacted in Finance Act 2006 mean that the use of Probate trusts has unwelcome inheritance tax implications. Scottish Life International has had Counsel draft a trust which is designed to sidestep both the need for Isle of Man Probate and an inheritance tax chargeable transfer."
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For further information please contact:
Scottish Life International
Alan Blackburne
Head of UK Sales
Tel: 01296 660 980
Mobile: 07919 171 604
alan.blackburne@sli.co.im
Gerry Brown
Technical Manager
Tel: 0131 456 6024
Mobile: 07919 171 587
gerry.brown@sli.co.im
Editors Notes:
Scottish Life International was launched in 1996 and is now part of the Royal London Group. The company has grown rapidly in size and now has funds under management in excess of £730 million from investors in the UK and around the world (as at 31 December 2006). Scottish Life International is based in the Isle of Man, where it is supervised by the Isle of Man Government Insurance and Pensions Authority.
Scottish Life International is a member of the Association of International Life Offices (AILO) and sponsors IFA Promotion (IFAP), which supports the need for independent financial advice.
Holders of policies issued by Scottish Life International Insurance Company Limited, based in the Isle of Man, will not be protected by the UK Financial Services Compensation Scheme if the company becomes unable to meet its liabilities to them. Policyholders will however be protected by the Isle of Man Life Assurance (Compensation of Policyholders) Regulations 1991.
Royal London Group is a specialist financial service provider. Its businesses focus
on those sectors of the market which value premium propositions, operating through
a number of brands:
- Scottish Life - UK pensions market
- Bright Grey - UK protection market
- Scottish Life International - offshore investment markets
- RLAM - fund management
- RLAS - life and pensions administration
Royal London is one of the stronger life and pension companies in the UK and has a particularly strong track record for with profits performance.
Royal London is the largest mutual life and pensions company in the UK with Group funds under management of £30.8 billion. Group businesses serve over three million customers and employ 2,640 people. (Figures quoted are as at 31 December 2006.)
The draft deed is available as a specimen only. Details are based on Scottish Life International’s current interpretation of UK taxation law and practice which may be affected by affected by future changes in UK legislation. Specialist tax and legal advice should be taken before any tax strategy is implemented.