Overview
Provides clients with unrestricted access to the original capital invested, with future investment growth being outside of the client’s estate for IHT– no discretion to change beneficiaries.
Quick facts
- For use with the Collective Investment Bond.
- Available in English and Scottish Law.
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This is a trust which your client, the settlor, creates by lending money to their trustees to invest rather than giving it away.
- The loan is repayable to your client on demand, giving them flexibility for the future, and can be repaid to them on an occasional basis, or by regular repayments.
- The loan remains within your client’s estate for inheritance tax (IHT), whilst any growth on the trustee’s investment is made outside the estate.
- The settlor chooses their trustees. They can appoint themselves as a trust. However, it is recommended that there is at least one other trustee in addition to themselves.
- When the trust is established, the settlor names their beneficiaries and their share of the trust fund. This cannot be changed later.