Trust and estate planning

The content on this page is intended for the use of professional financial advisers only. If you are not an adviser, please visit our customer site

View Our Trusts page to download literature.

Why choose a trust?

We have designed our trust range to offer tax-planning and wealth preservation solutions. The choice of trust will depend on the individual's financial and family circumstances.

To make gifts and preserve wealth

A trust can be used to preserve wealth for future generations. By placing assets in trust, the creator of the trust (the settlor) can provide a degree of financial security for the immediate family and beyond. A suitable trust can give parents and grandparents peace of mind as regards the well-being of future generations. This is especially useful where the beneficiaries are minors as it allows the trustees to have control over when the trust property is used/distributed. Where a discretionary version is used, trustees also have control over who benefits are finally paid to and when they will be paid.

To avoid probate delays

In the event of the death of a policyholder, a grant of representation is required to verify that the executor /administrator of the deceased in contact with us is the correct person that we should be dealing with. In the event of a death claim, we would not be able to pay the death benefit to the estate until probate was granted. For policies that will continue (capital redemption contracts or where a life assured remains) we would not be able to accept assignment or surrender instructions until we had sight of the grant. 

A policy written in trust is legally owned by the trustees. It does not therefore form part of the original policyholder's estate on death. Accordingly, because the policy does not belong to the deceased, the policy will be available for distribution by the trustees without the need for a Grant of Probate (subject to our normal procedures). By transferring a policy into trust, the time, cost and inconvenience associated with obtaining probate is removed.

To assist with tax planning 

Transferring an asset (such as an offshore life policy) into trust will change the legal ownership of that asset. This invariably changes the taxation of the asset, which creates a number of important tax-planning opportunities for the adviser to consider. 

For further information on how our trusts can help with your clients' tax and estate planning, please contact your regional sales manager.

View Our Trusts page to download literature.