Luxembourg-based Lombard International Assurance has unveiled a new service called Flexible Legacy Plan, which allows UK residents to gift assets to their children, while holding some control over when they receive them.
The new plan will enable policyholders to set the age at which their beneficiaries can use the capital of their life policy in addition to allowing adaptation to changing circumstances.
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
The Flexible Legacy Plan will use a potentially exempt transfer (PET) for inheritance tax purposes.
Additionally, when compared to discounted gift trusts, the new service will exclude the investor as a beneficiary while allowing discretionary trustees control over access to policy benefits through a limited chargeable lifetime transfer.
The plan will focus at investors who have already used any available nil rate band for inheritance tax purposes.
Robert MacIntyre, Lombard’s head of wealth structuring solution, said: "Innovative life insurance structuring is a very flexible tool in wealth management. Many clients of our distribution partners have worked hard to/accumulate wealth and want their children to benefit, while at the same time not conveying too much control at too young an age."
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalData"The Flexible Legacy Plan can be tailored to their complex needs and will, in Lombard’s view, prove very attractive to clients and their financial advisers when assessing future needs," he added.
