2 November 2006. Zurich has launched a new trust to give intermediaries and their customers even more choice for inheritance tax (IHT) planning.
Available immediately, the Sterling Discretionary Trust and the Zurich Discretionary Trust have been introduced in response to the recent changes to the taxation of some trusts and demonstrate Zurich's ongoing commitment to offering intermediaries and their customers a choice of solutions that respond to the changing world we live in.
A discretionary trust offers greater flexibility than some other trusts such as Bare Trusts. Changes to the beneficiaries can be made at any time during the trust period, and none of the trust fund is included in any of the estate for IHT purposes.
The launch of the new trusts will now provide intermediaries and their clients with a choice of Bare and Discretionary Trusts, available through the Sterling Bond and Zurich's Whole of Life plan (both the Reviewable version and the recently launched Guaranteed version). The new Discretionary Trusts will appeal to clients who require the added flexibility to be able to change the beneficiaries. Whereas the existing Bare Trusts remain a viable option for those who will not need or want to make any changes to the beneficiaries but want to avoid the IHT treatment that apply to discretionary trusts.
Paul Wright, Zurich's Investment Management Director, comments:
"This new Discretionary trust has been designed to complement our existing range of trusts. IHT is an increasingly important part of the financial planning process and we are delighted to be able to offer advisers and their customers a choice of market leading solutions."
For more information, please contact Nicola Bryson, Senior Media Relations Consultant on 01793 503354 or 07734 336281
Notes to Editors
As the new Discretionary trusts are full discretionary trusts, gifts into these are treated for IHT as Chargeable Lifetime Transfers. As such, all gifts above £10,000 (or £40,000 cumulatively over 10 years) must be reported to HMRC.
These new Discretionary Trusts are offered in addition to those already offered in Zurich's suite of Trusts :
- Zurich and Sterling Absolute Trusts - Bare Trusts launched in July 2006
- Sterling Discounted Gift (Bare) Trust - launched in June 2006
- Sterling Loan Plan (Bare) Trust - launched in June 2006
- Sterling Discretionary Discounted Gift Trust - launched on 3 October 2006
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 55,000 people serving customers in more than 120 countries.
