Old Mutual Wealth has unveiled a new Lifestyle Trust, which will help clients achieve effective inheritance tax planning with more flexibility.
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The new trust, which is suitable for clients of all ages, aims to attract a younger generation using trusts for inheritance tax planning.
The Lifestyle Trust provides flexibility to adapt over time based on clients needs compared to a Discounted Gift Trust, where the right to withdrawals is ring-fenced at outset and cannot be changed.
Additionally, the trust will enable the settlor to decide the future dates when they may require withdrawals, and state the number of policy segments they may wish to access on each of these dates.
The stated policy segments will be moved into a bare trust and can be accessed immediately, at a later date, or assigned to a loved one if the settlor takes the entitlement.
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By GlobalDataIf an entitlement is postponed to a later date, the funds will stay within the trust and remain outside of the settlor’s estate, and for inheritance tax purposes.
The trust also has the flexibility to top-up at any point.
The Lifestyle Trust will target customers who invest in either an Old Mutual Wealth bond in the UK or an Old Mutual International bond (from either Old Mutual International Isle of Man or Old Mutual International Ireland).
Also, Old Mutual International bond customers can also use Old Mutual International Trust Company to run the Lifestyle Trust on their behalf.
Old Mutual Wealth financial planning expert Rachael Griffin said: "The Lifestyle Trust offers the inheritance tax efficiency you would expect from a trust, with the added benefit of flexible access to funds in the future.
"This flexibility will help make trust planning more attractive to those who might otherwise see trusts as locking away their savings."
