Overview
Provides clients with access to the interest free loan they made to the trustees, with future investment growth being outside of the client’s estate for IHT– discretion to change beneficiaries.
Quick facts
- For use with the Collective Investment Bond.
- Available under the law of England and Wales and Scots Law.
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This is a trust which your client, the settlor, creates by lending money interest free to their trustees to invest rather than giving it away.
- The loan is repayable to your client on demand, giving them flexibility for the future, and can be repaid to them on an occasional basis, or by regular repayments.
- The loan remains within your client’s estate for inheritance tax (IHT), whilst any growth on the trustee’s investment is outside the estate.
- The settlor chooses their trustees. They can appoint themselves as a trustee. However, it is recommended that there is at least one other trustee in addition to themselves.
- Beneficiaries not covered by the classes can be added to the trust by the settlor.