Swindon 26 June 2008. Zurich has launched two new individual pensions trusts, the Pensions Discretionary (2 years) Trust and the Pensions Discretionary (80 years) Trust.
The new trusts are designed to provide advisers and their clients with greater control, flexibility and peace of mind to ensure effective estate planning.
Commenting on the launch of the new trusts, Dave Lowe, Pensions Management Director said, “Individual pension trusts are an important retirement planning area for financial advisers and Zurich is pleased to support this expanding market with innovative solutions. Choice, control and flexibility are crucial factors for clients and by developing these new trusts we endeavour to make it easier to help consumers understand the complexities around trust planning.”
The Pensions Discretionary (2 year) Trust forces benefits to be paid within 2 years of death, resulting in no IHT liability.
Alternatively The Pension Discretionary (80 year) Trust should be considered when it may not be appropriate to pay out benefits within two years of the member’s death, for example where it may be advantageous to avoid the death benefits being subject to IHT on the subsequent death of the spouse or civil partner. Though this may incur an IHT liability, the lump sum can then be retained and invested inside the trust for up to 80 years and allows the spouse access to the benefits if required via an interest free loan.
Both trusts are available for new business customers and can be used in conjunction with the Zurich SIPP and Protected Rights Transfer Plan. Zurich has also developed a technical guide to support the launch of the new trusts, which provides detailed guidance on how the trusts should be completed. For more information on the new trusts, please call 0800 546546.
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For further information, please contact Sara Lister, Senior Media Relations Consultant on 01793 505586 or 07785 885161.
Notes to editors:
Zurich Financial Services Group (Zurich) is an insurance-based financial services provider with a global network of subsidiaries and offices in North America and Europe as well as in Asia Pacific, Latin America and other markets. Founded in 1872, the Group is headquartered in Zurich, Switzerland. It employs approximately 60,000 people serving customers in more than 170 countries.
