Skandia launches ‘The Best Start in Life’ trust on Skandia Investment Solutions (SIS)


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07/01

Skandia launches ‘The Best Start in Life’ trust on Skandia Investment Solutions (SIS)

Skandia, part of Old Mutual Wealth, has today launched ‘The Best Start in Life’ trust on its UK platform. The trust is a tax-efficient planning solution combining the flexibility and control of a discretionary trust, with the option to use a bare trust, if necessary, to improve tax efficiency when distributing the trust fund.

‘The Best Start in Life’ trust, which has already seen great success through Skandia’s international business, will appeal to those individuals, such as grandparents, who wish to pass part of their wealth onto beneficiaries, therefore reducing the inheritance tax (IHT) liability on their own estate.

After investing in the SIS Collective Investment Bonds (CIB), to ensure any growth sits outside of the individual’s estate, the investment can be assigned to ‘The Best Start in Life’ trust. Initially set up as a discretionary trust, the settlor does not have to nominate beneficiaries from the outset or specify specific entitlements to be paid out in the future; however, legal ownership is transferred to the trustees. Additionally the settlor may choose to complete a ‘letter of wishes’ giving guidance to the trustee on how to divide the capital.

‘The Best Start in Life’ trust also provides further flexibility by allowing trustees to assign the assets to the beneficiary or to make an absolute appointment by creating a bare trust in favour of that beneficiary, which is particularly attractive where the beneficiary is a minor. This means it is the beneficiary, not the settlor on whom any taxable events are assessable. If any taxable amount falls within the beneficiary’s personal allowance then the tax liability can be significantly reduced or mitigated.

Phil Carroll, financial planning expert at Skandia, comments:

Phil Carroll

“The ‘Best Start in Life’ trust has proved extremely popular in our international markets, so we decided to extend this to our UK platform. Whilst often perceived as complicated, clever use of trusts can result in significant savings, especially for those who are conducting estate planning. ‘The Best Start in Life’ trust allows trustees to reduce the tax liabilities for the settlor or the beneficiary by using just one flexible tax-efficient solution.”  

For more information contact

Amelie ShepherdOld Mutual Wealth02380 916 09107834 499 596
Sophie LentonOld Mutual Wealth02380 916 77007834 499 558

Notes to Editors:

Old Mutual Wealth

Old Mutual Wealth is a leading wealth management business in the UK and internationally, helping to create prosperity for the generations of today and tomorrow.

It has an adviser and customer offering spanning:

  • Financial advice delivered by the Intrinsic network in the UK and AAM Advisory in Singapore
  • Platform based wealth management and protection products delivered by Old Mutual Wealth in the UK & Italy* and Old Mutual International globally
  • Asset management solutions delivered by Old Mutual Global Investors
  • Discretionary investment management delivered by Quilter Cheviot.

Old Mutual Wealth oversees £119 billion in customer investments (as at 30 September 2016).

Old Mutual Wealth is part of Old Mutual plc a FTSE 100 group that provides life assurance, asset management, banking and general insurance. Old Mutual is trusted by more than 19.4 million customers across the world and has a total of £342.7 billion assets under management (as at 30 June 2016).

*Old Mutual Wealth announced the sale of Old Mutual Wealth Italy to Ergo Italia on 9 August 2016. The transaction is pending completion.

This press release is for journalists only and should not be relied upon by financial advisers or customers. Investments may fall or rise in value and investors may not get back what they put in.