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Gift Plan


Our Gift Plan is designed to help your clients reduce their Inheritance Tax (IHT) liability by making a gift and also gives:

  • Flexibility in choice of beneficiaries
  • Faster payments to beneficiaries after the death of the person who created the trust

Using the Gift Plan, client assets can be invested in a Standard Life bond.

How it works

The Gift Plan is easy to set up and to operate. It lets clients make a gift, and allows them to retain some control by acting as a trustee. The client establishes a trust, appoints trustees and may nominate beneficiaries. The gifted assets are passed to the trust. A variety of assets can be held by the trust including cash. Trustees decide on the investment strategy of the trust which can include Standard Life bonds.

Types of trust

With the Gift Plan your clients can choose the type of trust that best suits their goals:

  • Discretionary trust – lets the client indicate who they would like to benefit from the Plan, but the trustees have the final choice
  • Flexible trust – lets the trustees choose who benefits from the beneficiaries defined in the Trust. At outset your client will specify a main beneficiary or beneficiaries. They are entitled to any income and will benefit if the trustees don’t make any choice about the trust fund.
  • Absolute trust – your client specifies the beneficiaries when the Plan is set up. These beneficiaries can’t be changed by the trustees

Trustees investment powers

The trustees have wide investment powers. For example, they can select non-income producing bonds – so no taxable income arises in the trust until the bond is cashed in, simplifying the tax and accounting responsibilities of the trustees.

Using Standard Life bonds

Existing Standard Life bonds held by the client can be included in the Gift Plan. Trustees can use any cash in the Plan to invest in new Standard Life bonds.

The minimum initial investment or increment in a new bond depends on the type of bond selected. Normal terms may not apply for investments greater than £500,000 (for onshore bonds) or £3,000,000 (for offshore bonds).

Benefits for your clients

  • IHT savings – the amount gifted to the Plan will fall outside the client’s estate after seven years. Any growth in the investments held in the Plan will be outside the client’s estate immediately for IHT purposes
  • Flexibility – allows the client to select beneficiaries without including this in a will. For flexibility, a discretionary or flexible trust should be used
  • Speedier payment – on the client’s death, there’s no need to wait for probate or confirmation before payments can be made from the trust

Benefits for your business

  • Creates other business opportunities – by discussing the Gift Plan with your clients, you are giving more comprehensive advice to your client and can start a wider estate planning conversation, which could lead to other business opportunities
SLG LiveSite Portlet
SLG LiveSite Portlet

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