25 October 2006
Winterthur Life has launched a new range of approved Discretionary and Bare Trusts for use with its Investment Bond, following the Finance Bill receiving Royal Assent in July. The Trust range consists of Discounted Gift Trust, Gift Trust, Loan Trust and Will Trust (discretionary wordings) and Discounted Gift Trust, Loan Trust and Gift Trust (bare wordings).
The new range provides a broad choice reflecting the diverse needs of the high net worth market place. Offering bare trust wording in conjunction with discretionary wording will ensure the trust proposition provides a choice for advisers in selecting the most appropriate trust and tax advice for their clients' circumstances.
Under a discretionary trust wording no beneficiaries are entitled to a current right to income and the trustees can choose to whom they pay the benefits. However, as a chargeable lifetime transfer is created there are specific reporting requirements together with a potential liability to IHT charges.
Using a bare trust ensures there are no entry, periodic or exit charges. However, beneficiaries cannot be changed. This compromise in flexibility has to be assessed against the potential tax implications.
Angela Baskeyfield, marketing director for Winterthur Life UK, commented, “Our restyled Trust range offers an obvious benefit to top end advisers. We believe trusts have retained their benefits as tax and estate planning vehicles providing flexibility and control. It also underlines our support to the high net worth marketplace and our commitment to providing wealth management solutions.”
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For further information:
Paul Riddell Winterthur Life, Press Office +44 (0)1256 798099
Sandra Fulton Winterthur Life, Press Office +44 (0)1256 798310
Christine Wood Financial Dynamics +44 (0)20 7269 7253
Notes to Editors
• The Discounted Gift Trust is designed for Settlors who wish to make a lump sum investment that is effective for IHT purposes yet wish to retain a right to a stream of cash payments for the rest of their lives that can be used as income.
• The Gift Trust is ideal where the Settlor does not need to retain access to the Bond but can ensure the Bond is held for the benefit of beneficiaries outside of the (inheritance) taxable estate of the Settlor.
• The Will Trust allows the nil rate band to be used on the death of each legal partner whilst ensuring that the surviving spouse has access to the deceased’s assets following the first death. It therefore combines both the practical objectives of many married individuals with sensible inheritance tax planning.
• The Loan Trust is designed for Settlors who wish to carry out some IHT planning but cannot afford to give up all access to the funds intended to be used in the planning. However, they would be prepared to give up access to any investment growth on the Bond.
• The Winterthur Life Investment Bond brings all the choice and flexibility needed to meet clients’ investment requirements and strategies. Clients can invest £15,000 or more and enjoy a 100% allocation in many of the finest funds available in the market. It also provides access to Winterthur’s Tailored Selection fund platform, a range of over 90 high quality funds from over 30 external fund groups, and Winterthur’s Elite range of Fund of Funds. The Bond also comes complete with a transparent and simple charging structure.
About Winterthur Life UK Limited
Winterthur Life UK Limited is part of Winterthur Group, a leading Swiss insurance company with its international headquarters in Winterthur, Switzerland.
Winterthur Life UK offers pensions and investments for high net worth clients distributed via top tier IFAs and is renowned for its innovative approach to financial products. Its philosophy of transparent product propositions offers advisers a range of retirement and investment solutions with an open charging structure.
Winterthur Life UK is an experienced provider of single premium personal pensions, trustee investment plans and corporate pensions via IFAs and a leading provider of self-investment retirement plans like Self Invested Personal Pensions (“Sipps”).
Any opinions expressed in this media communication are made as at the date of publication but are subject to change without notice. Past performance is not a guide to the future. The value of shares/units and the income from them can go down as well as up. Exchange rate fluctuations may cause the value of underlying investments to fall as well as rise. Yields are not guaranteed and may fall or rise.
Winterthur Life UK Limited is authorised and regulated by the Financial Services Authority.
www.winterthur-ifa.co.uk
Winterthur Group
Winterthur is the leading insurer in Switzerland, and ranks among the top ten all-line carriers in Europe. With a history spanning more than 130 years, Winterthur's life insurance, pension and non-life businesses are based mainly in Western Europe, but the group also has activities in Central and Eastern Europe, the US and Asia. Using a variety of channels, the group manages a balanced product portfolio for private clients as well as small and medium-sized companies. Winterthur operates in 17 countries, and has around 19,000 employees and 13 million clients worldwide. In the first half year of 2006, the group achieved a business volume of 18.8 billion Swiss francs, and reported assets under management of 157.4 billion Swiss francs as of June 30, 2006. Winterthur is a 100% subsidiary of Credit Suisse Group, a leading global financial services company headquartered in Zurich. Further information about Winterthur can be found at www.winterthur.com.
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