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Standard Life helps individuals protect their investment in OEICs and unit trusts from IHT

24 June 2008

Standard Life has widened its estate planning proposition by increasing the investment options available within its Gift Plan. For the first time, it is now possible to put mutual fund investments into the trust wrappers held within Standard Life's Gift Plan.

Until now the majority of life office trusts, including Standard Life's, only permitted onshore and offshore bonds to be held in a trust wrapper. The expansion of the Gift Plan will enable individuals to save monthly or on a one-off basis into a unit trust or OEIC and benefit from any growth in the value of the funds being outside the individual's estate for IHT purposes. The capital value of the gift falls outside the individual's estate after 7 years.

Customers can take full advantage of multi-investment wrapper and multi-trust planning when looking to:

• make use of their annual IHT exemptions;
• earmark and set aside funds for the next generations;
• make regular investments (mutual funds) and/or lump sum increments (bonds).

Commenting on the launch, Julie Hutchison, Head of Estate Planning at Standard Life said:

"Life offices are moving away from the old model of "trust + bond" as the single flavour offering and Standard Life's estate planning proposition is helping to drive this development. This launch marks a big step forward from the traditional life office approach of only linking an investment bond with trust planning. The expansion of the investment choice within our Gift Plan into collectives will offer much greater flexibility to individuals than ever before."

The Gift Plan now allows an individual to choose from a comprehensive range of trusts (absolute, discretionary and flexible) as well as take advantage of the varying investment options offered through the onshore bond, offshore bond and mutual funds. The mutual fund option is likely to appeal to the high net worth end of the market. It should be noted that being an income-producing asset, it will generate the need for a tax return to be submitted to HM Revenue & Customs.

Media enquiries please contact:

Yvonne Savage, Senior Media Affairs Manager
UK Financial Services, Standard Life
Direct: 0131 245 0476
Mobile: 0771 248 6331
Email: yvonne_savage@standardlife.com

Lesley Davidson, PR Consultant
UK Financial Services, Standard Life
Direct: 0131 245 6087
Mobile: 0773 497 4190
Email: lesley_f_davidson@standardlife.com

Notes to Editors

1. Standard Life Assurance Limited is recognised for the high quality of its customer service, in particular for providing a service that is consistent, reliable and responsive. Standard Life received recognition for this in 2007 when the company were voted a 5 star Life and Pension provider at the Financial Adviser Service Awards for the 12th year running. Standard Life has been voted Money Marketing Company of the Year in nine of the last ten years.
   
   
2. Standard Life has approximately 7 million customers worldwide and provides an extensive range of products and services, aimed at meeting the financial requirements of customers throughout their lives.
   
   
3. A Discretionary Trust gives full flexibility to the trustees to decide who benefits from the trust and when, selecting from a class of beneficiaries including those named by the settlor.
   
   
4. A Flexible Trust names certain beneficiaries who have a right to receive income. The trustees have the power to change the beneficiaries at a later date in relation to both income and capital entitlements.
   
   
5. An Absolute Trust names certain beneficiaries who have a right to the trust funds at age 18 (or 16 in Scotland). The trustees cannot change these beneficiaries.
   
   
6. Tax and legislation is likely to change. The information provided here is based on Standard Life's understanding of current law and HM Revenue and Customs practise at date of publication.

Summary of the estate planning proposition following the launch:

Loan Plan	Discounted Gift Plan	Gift Plan
Trust Range	Trust Range	Trust Range
Absolute Trust	Absolute Trust	Absolute Trust
Flexible Trust	Flexible Trust	Flexible Trust
Discretionary Trust	Discretionary Trust	Discretionary Trust
Investment Solutions	Investment Solutions	Investment Solutions
Onshore Bond	Onshore Bond	Onshore Bond
Offshore Bond	Offshore Bond	Offshore Bond
-	-	Mutual Funds

 

 

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