Excluded Property Trust

The Excluded Property Trust allows a lifetime gift to be made into a discretionary trust. It can include one or more beneficiaries, including the non-UK domiciled person creating the trust, who wants to ensure that the gift does not form part of their UK estate for inheritance tax purposes. This gift is invested in the International Portfolio Bond.

• The settlor’s non-UK assets are held in trust with continuing exempt status from UK inheritance tax (IHT)
• Payments can be made to the beneficiaries at any time, including the settlor
• The settlor can take regular payments of up to 5% a year of the original investment amount cumulatively (up to a maximum of 100% of the original investment) without any immediate income tax charge. Full or partial surrenders will reduce the amount of regular payments that can be taken without incurring an immediate income tax charge
• The trust will continue to the end of the trust period or until all the trust assets have been distributed

The value of the bond held within the trust can fall as well as rise and is not guaranteed.