International
Flexible Trust

An independent review by our team of experts

An international flexible trust is not suitable for someone who is UK domiciled. This trust has a wide class of beneficiaries, of whom the settlor can be one, and it would therefore be a gift with reservation (a ‘GROB’). It would also form part of a UK domiciled individual’s estate for IHT purposes.

An international flexible trust can have up to two settlors, be used for existing bonds and can accept top-ups.

An international flexible trust can be suitable for non-UK domiciled individuals who want to retain access to their investments and who want to ensure that their policy passes to a nominated beneficiary upon death.

NOTE:

We would highly recommend reading the 'expert verdict' section of this review to make an informed decision.

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The Pros

> Potential inheritance tax (IHT) planning benefits

> With the trust being flexible, this gives the trustees the power to appoint monies to any of the beneficiaries. This can be particularly useful for succession planning purposes, as the beneficiaries chosen could be the same as specified in the client’s will.

The Cons

> Not suitable for UK domiciled individuals

> The trust is not suitable for someone who is UK domiciled, as the trust has a wide class of beneficiaries (of which the settlor is one) and it would therefore be a gift with reservation. It would also form part of the client’s estate for UK inheritance tax purposes.

Is the settlor a beneficiary of the trust?

Yes, the settlor is a beneficiary of the trust.

Who is the international flexible trust suitable for?

The international flexible trust may be suitable for non-UK domiciled individuals who wish to retain access to their investments and wish to ensure that their policy passes to a nominated beneficiary upon death.

Expert assessment of an international flexible trust

An international flexible trust can be a useful solution, but whether it is applicable has to be determined on a case-by-case basis, as does the case for using trusts in general.

If you already have a trust structure in place and would like a Second Opinion - or, if you are wondering whether the utilisation of a trust could be of benefit to you, contact us.

NOTE: Because trusts are so unique to each individual, it’s impossible to give them a rating for their overall performance and suitability. Therefore these reviews do not come with a star rating.

The information in this material is intended for the recipient’s background information and use only. It is provided in good faith and without any warranty or, representation as to accuracy or completeness. Information and opinions presented in this material have been obtained or derived from sources believed by AES to be reliable and AES has reasonable grounds to believe that all factual information herein is true as at the date of issue. It does not constitute investment advice, recommendation, or an offer of any services or products for sale and is not intended to provide a sufficient basis on which to make an investment decision. It is the responsibility of any persons wishing to make a purchase to inform themselves of and observe all applicable laws and regulations. Unauthorised reproduction or transmitting of this material is strictly prohibited. AES accepts no responsibility for loss arising from the use of the information contained herein.

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RISKS

Investments involve risks. The investment return and principal value of an investment may fluctuate so that an investment, when redeemed, may be worth more or less than the capital invested. Past performance is not a guarantee of future results. There is no guarantee strategies will be successful. For further information, please click here.

International
Flexible Trust

An independent review by our team of experts

REVIEW SUMMARY