If your clients don’t need continuous access to their capital, our Gift Scheme can help them to reduce their inheritance tax liability. It allows your clients to make a lifetime gift that’s then invested in the International Portfolio Bond.

Gift Scheme

The Gift Scheme allows a person, who does not need continuing access to their Capital, the opportunity to reduce their potential inheritance tax liability by making a lifetime gift for inheritance tax purposes. This gift is invested in the International Portfolio Bond by the trustees of the Gift Scheme.

• It provides a potential reduction in the value of the donor/settlor’s estate for IHT purposes
• The entire gift will be outside of the donor/settlor’s estate for IHT purposes after seven years
• Ensures that any future growth in the value of the investment held by the trustees will immediately be outside of the donor/settlor’s personal estate
• It allows the trustees (of which donor/settlor is one) to make payments to the beneficiaries of the trust at any time
• The trust will continue to the end of the trust period (125 years) or until the trust fund has been distributed to the beneficiaries in full
• The settlor/donor cannot benefit from the trust fund in any way

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