Scottish Life International introduces new trust
Wednesday, 9 April 2008
Scottish Life International has introduced a new trust unique to the retail, IFA and insurance market, enabling the Settlor to make a Potentially Exempt Transfer and establish a flexible trust.
The changes introduced in the 2006 Finance Act in respect of the inheritance tax treatment of trusts have largely negated the use of flexible trusts, as the transfer to the trustees becomes immediately chargeable to IHT where the value exceeds the Settlor's available nil rate band rather than being potentially exempt.
Scottish Life International can once again offer investors an effective way of reducing their IHT liability and at the same giving their trustees the discretion to provide for a wide range of beneficiaries rather than creating absolute entitlements which cannot be changed.
Neil Chadwick, Technical Officer at Scottish Life International commented,
"This trust offers investors the opportunity to not only reduce the value of their IHT estate but also the added flexibility of a fully discretionary trust.
"We had intended to make this available at an earlier date, however, we wanted to make sure that it was 2008 Finance Act friendly!"
IFAs who would like further information on this exciting opportunity can contact their regional sales manager through Scottish Life International Sales Support (Tel. 01624 681 531 email salessupport@sli.co.im).
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For further information, please contact:
Scottish Life International
Zoe Redhead, Communications Analyst
Tel: 0131 456 6024
Zoe.Redhead@sli.co.im
Notes to Editors:
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 £763m worldwide (as at 30 September 2007). 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
- Royal London Asset Management – fund management
- Royal London Administration Services – life and pensions administration
- Fundsdirect / Ascentric – funds supermarket; wrap platform
Royal London is the largest mutual life and pensions company in the UK with Group funds under management of £33.1 billion. Group businesses serve around three million customers and employ 2,620 people.(Figures quoted are as at 31 December 2007.)
Issued by Scottish Life International Investment Group Limited, a Royal London company which is authorised and regulated by the Financial Services Authority. Registered in Scotland number 166387. Registered office: 19 St Andrew Square, Edinburgh EH2 1YE.