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Lifestyle trust

Overview

A flexible solution where the client gifts money to a trust and has the option of taking capital payments plus any growth at fixed points in the future.

Quick facts

  • For use with the Collective Investment Bond.
  • A flexible solution where the client gifts money to a trust and has the option of taking capital payments in the future.
  • They can forgo or defer access to capital payments if they wish, so they can achieve their objectives without having to make irrevocable decisions about their own future financial needs.
  • The Lifestyle trust can help your clients mitigate their inheritance tax liability and manage the future distribution of assets.
  • The settlor chooses their trustees. They can also appoint themselves as a trustee.
  • This is a discretionary trust where classes of beneficiary are defined within the deed; for example, ‘children and decedents of the settlor’. Beneficiaries not covered by the classes can be added to the trust by the settlor.

Suitability