Skandia launches ‘The Best Start in Life’ trust on Skandia Investment Solutions (SIS)
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07/01/2014

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:

About Quilter plc:

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

Quilter plc oversees £116.5 billion in customer investments (as at 30 June 2018).

It has an adviser and customer offering spanning: financial advice; investment platforms; multi-asset investment solutions and discretionary fund management.

The business is comprised of two segments: Wealth Platforms and Advice and Wealth Management.

Wealth Platforms includes the Old Mutual Wealth UK Platform; Old Mutual International, including AAM Advisory in Singapore; and the Old Mutual Wealth Heritage life assurance business.

Advice and Wealth Management encompasses the financial planning network, Intrinsic; Old Mutual Wealth Private Client Advisers; discretionary fund management business, Quilter Cheviot; and the Multi-asset investment solutions business.

The Quilter plc businesses are being re-branded to Quilter over a period of approximately two years:

• The Multi-asset business is now Quilter Investors

• Intrinsic to Quilter Financial Planning

• Private Client Advisers to Quilter Private Client Advisers

• The UK Platform to Quilter Wealth Solutions

• The International business to Quilter International

• The Heritage life assurance business to Quilter Life Assurance

• Quilter Cheviot will retain its name

This press release is for journalists only and should not be relied upon by financial advisers or customers.

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