For adviser use only. Your Guide to Relevant Life Policies

Save this PDF as:
 WORD  PNG  TXT  JPG

Size: px
Start display at page:

Download "For adviser use only. Your Guide to Relevant Life Policies"

Transcription

1 For adviser use only Your Guide to Relevant Life Policies

2 Your guide to relevant life policies Welcome to the Scottish Provident guide to relevant life policies. In this guide you will find all the information you need to understand the tax benefits and advantages of employer sponsored single life plans. It will also show you how to set the plans up, complete the trust documentation and submit the documentation to Scottish Provident. Important note The information in this brochure is based on our understanding of tax law and practice at the date of publication. It may be affected by future changes and individual circumstances. Contents P3 An introduction to relevant life policies P5 The tax advantages of relevant life policies P8 A summary of the benefits of relevant life policies P9 Conditions to qualify as a relevant life policy P10 Technical options of a relevant life policy P11 Documentation and process P14 The legislation P16 Contact us 2

3 An introduction to relevant life policies A relevant life policy is an alternative way for an employer to set up life cover for an employee in a tax efficient manner, without using a registered death in service group scheme. It is set up on a single life basis and is available for small businesses that might not normally be able to access this type of death in service cover. They are designed to meet the requirements of a single life relevant life policy under S393B(4) of the Income Tax (Earnings and Pensions Act) Relevant life policy suitability A relevant life policy is available for an employee of any type of business, including a director of a limited company (Schedule E tax payers). However, it is not aimed at an equity partner or member or sole trader (taxed under Schedule D). Relevant life policies are available to the following three groups: 1 Small businesses that do not have enough employees to warrant a registered group life scheme. Group life providers will not usually offer schemes for businesses that have less than five employees, and even if they were willing to do this, for legislative reasons they cannot offer a registered scheme on a single life basis. This means that many small businesses are effectively excluded from taking advantage of those benefits enjoyed by larger businesses. Because relevant life policies can be written on a single life basis, even smaller businesses can take out cover. 3

4 Your guide to relevant life policies 2 Certain high earning employees who may exceed the pension lifetime allowance. Registered group schemes come under pensions legislation, and this means that any lump sum benefits paid on death are added to the employee s pension funds when calculating the maximum allowance an individual can accumulate during their lifetime (currently 1.25 million 2015/16). If this allowance is exceeded there is a tax charge of 55% on the excess. Relevant life policies are non-registered. This means that they do not count towards the pensions lifetime allowance. Some high earners may have protected the amount in excess of the lifetime allowance limit to avoid the charge, but as a result they could not contribute any further amounts to their pension. Becoming part of a registered death in service scheme would count as a further contribution, so a relevant life policy can be particularly useful for this type of employee. 3 Members of group life schemes who want to top up their benefits. Some group life schemes have very restrictive rules with regard to the amount of benefit that can be provided. They can also have restrictive definitions of remuneration, often discounting overtime, bonuses and dividends. A relevant life policy can be used to top up these benefits in a tax efficient way. 4

5 The tax advantages of relevant life policies When an employer is considering death benefit for an employee, it is important to consider the cost of the premium and the true cost of providing for it. The premiums Premiums are paid by the employer, but are not normally treated as income in the hands of the employee, for example, a P11D benefit. Provided that the plan qualifies as a relevant life policy, by meeting the legislative requirements (described on page 14), there will be no charge to income tax for the employee in respect of the premiums. This also applies to National Insurance, which will not be due by the employer or employee in relation to the premiums, where the plan qualifies as a relevant life policy. The employer may be able to claim tax relief on the premiums as a trading expense of the business. The local inspector of taxes would need to be satisfied that the premiums would qualify under the wholly and exclusively rules. As a relevant life policy is not a registered group life scheme, premiums do not form part of the employee s annual pension allowance, but this also means that corporation tax relief on contributions is not guaranteed in the same way as a registered group life scheme. 5

6 Your guide to relevant life policies The example below illustrates the effect of taxation on the true cost of providing the same net premium, depending on how cover has been arranged. The plan on the left is owned by the employee, with the employee paying the premium from their net (post-tax) income. The plan on the right is a relevant life policy. Employee-owned Relevant life policy and paid plan Premium 1,000 1,000 Company gross cost Income 40% Employee s National Insurance Employer s National Insurance Total company gross cost 1,962 1,000 Company net cost Corporation tax * Total company net cost 1, * * For the purpose of the example, it has been assumed that corporation tax relief at 20% has been granted under the wholly and exclusively rules. The example assumes a premium of 1,000 each year to provide death benefit on the life of an employee who is paying income tax at 40% and employee s National Insurance at 2% on the top end of income. We have also assumed that the employer is paying corporation tax at the small profits rate of 20% and will pay employer s National Insurance at the contracted in rate of 13.8%. As the example demonstrates, a Scottish Provident relevant life policy could result in savings for a business when compared with an employee-owned and paid plan. 6

7 Tax treatment of premiums for an employee-owned and employer-paid life policy If the employee owns the plan and the employer pays the premium, the payment by the employer will be treated as the employer meeting a pecuniary liability of the employee. This is where the employee has entered into a contract, which involves the payment of premiums, but the employer meets the cost on behalf of the employee. Therefore, the employee is liable to both income tax and employee s National Insurance contributions on the premium. To provide the total cost of the plan, the amount of tax and National Insurance payable on the premium must be taken into account. The employer will usually be able to treat the gross cost as a trading expense, whether paid as salary or if the employer has paid the premium. Tax treatment of premiums for a relevant life policy The employer will set up the plan and pay the premiums. No income tax or National Insurance liabilities arise if the plan meets legislative requirements to qualify as a relevant life policy. Provided that the local inspector of taxes accepts that payment of the premiums has been incurred wholly and exclusively for the purpose of trade, the employer may be able to claim corporation tax relief on the premium. 7

8 Your guide to relevant life policies A summary of the benefits of relevant life policies Benefits paid on death do not form part of the employee s lifetime pension allowance. Benefits paid to the employee s dependants through a discretionary trust, known as the relevant life policy trust, will not involve an income tax charge for the employee. Benefits paid to dependants through a relevant life policy trust will be outside of the business, meaning the employer will not be subject to corporation tax or income tax. Benefits paid through the relevant life policy trust do not form part of the estate of the deceased employee and are therefore generally free of inheritance tax. Because the relevant life policy trust is a discretionary trust, it will be subject to the normal inheritance tax treatment applicable to discretionary trusts, known as the relevant property regime. In certain circumstances the following charges can arise: Periodic charge Up to 6% of the value of the trust fund in excess of the nil rate band ( 325, /16), on each tenth anniversary of the date the trust was established. A periodic charge will only apply if there is a value within the trust at a tenth anniversary. This could happen if, for example, the employee dies shortly before a tenth anniversary and the benefits have not been distributed to the beneficiaries. Exit charge Up to 6% of the value of the trust fund, on transfer of benefits out of the trust to a beneficiary. The actual tax charge may be less than 6%, as the rate of tax paid will depend on how many quarters have elapsed since the last periodic charge. 8

9 Conditions to qualify as a relevant life policy There are a number of conditions laid down in the legislation that a plan must meet in order to qualify as a relevant life policy and become eligible for the associated tax benefits. The plan must provide for a lump sum on death before the age of 75. It cannot provide an annuity. The policy cannot provide any other benefits such as critical illness benefit, disability income benefit or premium payment benefit. The policy cannot normally have a surrender value. This is not an issue with Self Assurance as it is a term assurance plan, so will not acquire a surrender value. Any benefit must be paid to an individual or a charity and this can be paid through a trust. The Scottish Provident relevant life policy is issued under a discretionary trust, as the employer will complete a Scottish Provident relevant life policy trust form. The main purpose of the policy must not be tax avoidance. HM Revenue & Customs (HMRC) guidance refers to tax avoidance as situations where less tax is paid than Parliament intended, or more tax would have been paid if Parliament had turned its mind to the specific issue in question. Current legislation provides for relevant life policies and sets out the tax treatment of them. However, if doubt exists as to whether individual circumstances are such that HMRC may consider an arrangement to be mainly for the purpose of tax avoidance, the business s accountant may be able to advise or seek clarification from HMRC. If a plan fails to qualify as a relevant life policy, the tax benefits will not apply. Further details of the legislation can be found at the end of this guide. 9

10 Your guide to relevant life policies Technical options of a relevant life policy Term of the cover Cover can be set up using a Self Assurance business plan for any fixed term from 5 to 40 years. However the cover cannot run beyond the employee s 75th birthday. Cover can also be set up on either a 5 or 10 year renewable basis as long as the renewed policy does not run beyond the employee s 75th birthday. Type of cover The policy will be a term assurance plan with no surrender value. The sum assured can be level throughout the term or it can increase with the RPI index up to a maximum of 10% each year. Cover can also be taken out on a decreasing basis. Premiums Premiums are paid by the employer and can be paid monthly or annually. Amount of cover We will accept an application for cover up to 15 times the remuneration of the employee for clients aged 40 and older and up to 20 times the remuneration of the employee if they are aged up to 39 (this is not a legislative restriction). Remuneration can include salary, bonuses, taxable benefits in kind and regular dividends in lieu of salary. For applications in excess of 2.5 million we will need evidence of earnings. Options available if an employee leaves employment There are two options available if an employee leaves the employer. Firstly, the trustees could complete an absolute appointment of the plan in favour of the employee. This means the plan will be held on a bare trust for the employee. Thereafter, the trustees could transfer ownership of the plan to the employee by assigning it. The employee could then continue the plan as personal cover. The employee would have to pay the premiums and would lose the tax advantages, but cover can be retained. We can provide a specimen deed of appointment and assignment, a form that includes both steps. 10

11 Alternatively, the plan can be maintained by the new employer provided they agree to pay the premiums. This can be done by retiring the original employer as a trustee and adding the new employer as both trustee and payer of the plan. We can provide a specimen deed of appointment of new trustee/removal or resignation of trustee form. Documentation and process When quoting, the cover must be input as Self Assurance term business. Quotations Quotations can be obtained from The IRESS Exchange, Assureweb and Webline or through the Scottish Provident Adviser Webcentre in the normal way. A Self Assurance term business plan should be selected to provide a quotation for a relevant life policy. Application form Submit the Self Assurance application either online or by using a paper application form. The applicant will be the employer and the life assured will be the employee. They should each sign the application form. If the life assured is signing on behalf of the company as director, he should indicate next to the company signature that he is signing as director. As the employer will pay the premiums, the box on the application should be ticked to indicate that the applicant will pay the premiums. 11

12 Your guide to relevant life policies The plan must be written on a single life basis and the benefits must include lump sum death benefit only - multiple death benefits in the one plan for the same life assured will be allowed. It is important to check that the sum assured does not exceed Scottish Provident s underwriting limits. It is also important to be certain that the plan will end before the employee s 75th birthday. At the additional information section of the application, the employer should insert relevant life policy, so that the purpose of the cover will be clearly identifiable. The Scottish Provident relevant life policy trust A relevant life policy trust and nomination form should also be completed and posted to the address shown on the form. As the plan should not start until the trust form has been completed and accepted by us, the trust box on the application form should be ticked. If the plan is placed in trust at a later date, once the plan has started, there may be a capital gains tax liability in the event of a claim being paid. To avoid this, if the trust box has been ticked on the application form, we will not start the plan until a fully completed trust form has been received and noted against the application. The trust also demonstrates that the plan proceeds will be payable to individuals (the employee s dependants) which is one of the legislative requirements to qualify as a relevant life policy. 12

13 The employer (as the settlor of the trust, known as the principal employer) will be a trustee. An additional trustee must be added to act with the employer. If the employee is to be the additional trustee, a further additional trustee should also be added to ensure that there would be two trustees available to act in the event of the employee s death. In addition to our administrative requirement that an additional trustee must be added when the trust is created, the trust requires there to be at least two trustees at all times, unless a corporate body is a trustee. An additional trustee may be a family member of the employee, such as a spouse, or perhaps an independent trustee, such as a solicitor. The employee has power under the trust to change the trustees. Benefits are paid at the discretion of the trustees, who will decide which discretionary beneficiaries receive funds, when to pay and what amounts. It is possible for the employee to guide the trustees in their decision making and a nomination form is included in the trust to enable the employee to express their wishes. The nomination form does not bind the trustees, though it will usually be followed by them in making their decision. Beneficiaries: The trust includes a wide class of potential beneficiaries, known as discretionary beneficiaries. This includes the employee s spouse, children and grandchildren. There is space for adding further discretionary beneficiaries such as a partner. It is also possible for the benefit to be paid to a further trust, such as a bypass trust. If this is required, then the name of the trust should be added to the list of discretionary beneficiaries. The employee is also included as a discretionary beneficiary, to allow the trustees to assign the plan to the employee if he leaves the business. It is not recommended that the employer or a co-shareholder be added as a discretionary beneficiary (unless they are also a spouse or civil partner) as this may compromise the tax benefits of the plan. 13

14 Your guide to relevant life policies The legislation Relevant life policies were created under the 2006 pension simplification legislation, commonly referred to as A day. The detailed legislation that governs relevant life policies is set out below. A relevant life policy is defined in subsection 393B(4) of the Income Tax (Earnings and Pensions) Act 2003 ( ITEPA ) as: (a) an excepted group life policy as defined in section 480 of the Income Tax (Trading and Other Income) Act 2005, (b) a policy of life insurance, the terms of which provide for the payment of benefits on the death of a single individual, and with respect to which: (i) condition A in section 481 of that Act would be met if paragraph (a) in that condition referred to the death, in any circumstances or except in specified circumstances, of that individual (rather than the death in any circumstances of each of the individuals insured under the policy) and if the condition did not include paragraph (b), and (ii) conditions C and D in that section and conditions A and C in section 482 of that Act are met, or (c) a policy of life insurance that would be within paragraph (a) or (b) but for the fact that it provides for a benefit which is an excluded benefit under or by virtue of paragraph (a), (b) or (d) of subsection (3) of ITEPA s.393b. Therefore the conditions that need to be met if a policy is to be a relevant life policy within the single life category set out in (b) are: Condition A in section 481 of the Income Tax (Trading and Other Income) Act 2005 ( ITTOIA ) that under the terms of the policy a sum or other benefit of a capital nature is payable or arises on the death in any circumstances of [the individual] insured under the policy who dies under an age specified in the policy that does not exceed

15 Condition C in section 481 that the policy does not have, and is not capable of having, on any day: (a) a surrender value that exceeds the proportion of the amount of premiums paid which, on a time apportionment, is referable to the unexpired paid-up period beginning with the day, or (b) if there is no such period, any surrender value. Condition D in section 481 that no sums or other benefits may be paid or conferred under the policy, except as mentioned in condition A or C. Condition A in section 482 of ITTOIA that any sums payable or other benefits arising under the policy must (whether directly or indirectly) be paid to or for, or conferred on, or applied at the direction of: (a) an individual or charity beneficially entitled to them, or (b) a trustee or other person acting in a fiduciary capacity who will secure that the sums or other benefits are paid to or for or conferred on, or applied in favour of, an individual or charity beneficially. Condition C in section 482 that a tax avoidance purpose is not the main purpose, or one of the main purposes, for which a person is at any time: (a) the holder, or one of the holders, of the policy, or (b) the person, or one of the persons, beneficially entitled under the policy. Other relevant legislation The charge to Income Tax and National Insurance on this type of death in service arrangement that previously existed under Part 6 of ITEPA 2003, Chapter 1, was removed by section 247 of the Finance Act This means that payments by an employer for a non-registered death in service plan on the life of an employee are no longer treated as employment income, where previously the payments would have been taxed as a benefit in kind. As the premiums are not treated as employment income, there will be no charge to Income Tax or National Insurance in respect of the premiums. 15

16 Your guide to relevant life policies Contact us For more information about relevant life policies and trusts contact your business development manager or a member of our sales team on Alternatively, you can us at for help and support on all protection specific taxation and trust related issues. Scottish Provident is a division of the Royal London Group, which consists of The Royal London Mutual Insurance Society Limited and its subsidiaries. The Royal London Mutual Insurance Society Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. The firm is on the Financial Services Register, registration number It provides life assurance and pensions and is a member of the Association of British Insurers and the Association of Financial Mutuals. Registered in England and Wales number Registered office: 55 Gracechurch Street, London, EC3V 0RL. SCPR5968 SEP15 LD

the benefits of relevant life policies

the benefits of relevant life policies the benefits of relevant life policies Welcome to our guide to relevant life policies. This guide explains the benefits of taking out a stand-alone single life policy on the life of an employee, and gives

More information

RELEVANT TECHNICAL LIFE GUIDE PLAN TO THE RELEVANT LIFE PLAN RELEVANT LIFE PLAN TECHNICAL GUIDE.

RELEVANT TECHNICAL LIFE GUIDE PLAN TO THE RELEVANT LIFE PLAN RELEVANT LIFE PLAN TECHNICAL GUIDE. RELEVANT TECHNICAL LIFE GUIDE PLAN TO THE RELEVANT LIFE PLAN 1 RELEVANT LIFE PLAN TECHNICAL GUIDE. 2 TECHNICAL GUIDE TO THE RELEVANT LIFE PLAN ABOUT THIS GUIDE This guide has been designed for financial

More information

For financial advisers only Relevant life technical guide

For financial advisers only Relevant life technical guide For financial advisers only Relevant life technical guide Please note this communication is for financial advisers only. It mustn t be distributed to, or relied on by, customers. About this guide We ve

More information

AIG Life. AIG Relevant Life Insurance. Adviser guide

AIG Life. AIG Relevant Life Insurance. Adviser guide AIG Life AIG Relevant Life Insurance Adviser guide Contents The basics 4 What is relevant life insurance? 4 Who is it suitable for? 4 What are the conditions that have to be met for relevant life insurance?

More information

Relevant Life Policy. Technical Guide for Employers and Employees

Relevant Life Policy. Technical Guide for Employers and Employees Relevant Life Policy Technical Guide for Employers and Employees What is a Relevant Life Policy? A Relevant Life Policy: is a term assurance effected by an employer on the life of an employee and funded

More information

Our guide to relevant life policies for advisers

Our guide to relevant life policies for advisers For advisers only Our guide to relevant life policies for advisers? Technical guide A relevant life policy is a stand-alone single life policy. It s a tax-efficient way for employers to give death-in-service

More information

This Trust form is designed for use to hold the lump sum death benefits payable under the following plan types in trust:

This Trust form is designed for use to hold the lump sum death benefits payable under the following plan types in trust: GGA1568 FLEXIBLE TRUST FORM This Trust form is designed for use to hold the lump sum death benefits payable under the following plan types in trust: Individual Plan issued in connection with your past

More information

Relevant Life Policy Trust and Nomination Forms

Relevant Life Policy Trust and Nomination Forms Relevant Life Policy Trust and Nomination Forms Important notes The forms are only suitable for use with Scottish Provident Self Assurance plans that have been applied for as relevant life policies. Both

More information

Relevant Life Insurance

Relevant Life Insurance For adviser use only. Not approved for use with customers. Relevant Life Insurance Introducing Relevant Life Insurance Retirement Investments Insurance Health Introducing Relevant Life Insurance We ve

More information

Intermediary guide to trusts

Intermediary guide to trusts Intermediary guide to trusts Important: The information in this guide is based on our understanding of current United Kingdom law and HM Revenue & Customs practice, which is subject to change. We cannot

More information

Relevant Life Policy Trust and Nomination Forms

Relevant Life Policy Trust and Nomination Forms Relevant Life Policy Trust and Nomination Forms Use these forms if an employer owns the plan and they want to provide life cover for one of their employees outside of a registered group life scheme. Part

More information

Guide to Relevant Life Policy and Trust

Guide to Relevant Life Policy and Trust Guide to Relevant Life Policy and Trust Relevant Life Policies are a tax-efficient way of providing death-in-service benefits on an individual basis to company directors and other company employees, no

More information

A PLAN FOR EVERY BUSINESS.

A PLAN FOR EVERY BUSINESS. BUSINESS PROTECTION GUIDE TO THE RIGHT SOLUTION A PLAN FOR EVERY BUSINESS. With 99.9% of the UK s businesses being SMEs and more than half of these having no protection in place, there s an opportunity

More information

Contents 1 The purpose of a trust 2 The key people involved in a trust 3 Choosing which trust form to use 5 Deciding how to set up the trust 8 Your

Contents 1 The purpose of a trust 2 The key people involved in a trust 3 Choosing which trust form to use 5 Deciding how to set up the trust 8 Your Our guide to trusts Contents 1 The purpose of a trust 2 The key people involved in a trust 3 Choosing which trust form to use 5 Deciding how to set up the trust 8 Your questions answered 13 Appendix 1

More information

Guide to trusts and being a trustee

Guide to trusts and being a trustee Contents P3 P4 P5 Fast facts Could you use a trust? What are the benefits? P10 What trusts do we offer? P10 The split trust P10 The gift trust P10 The probate trust P10 Trusts for joint life policies P11

More information

Understanding trusts. Your easy to follow guide

Understanding trusts. Your easy to follow guide Understanding trusts Your easy to follow guide Understanding trusts: Your easy to follow guide Important note The information in this guide is based on our understanding of current legislation and HM Revenue

More information

Relevant Life. Is your life cover appropriate? Corporate & Employer Solutions

Relevant Life. Is your life cover appropriate? Corporate & Employer Solutions Relevant Life Is your life cover appropriate? Corporate & Employer Solutions As a company director, taking out a Relevant Life policy could be a tax efficient way of providing valuable life cover for you

More information

AIG Life. Relevant Life Insurance A guide for employees and small businesses

AIG Life. Relevant Life Insurance A guide for employees and small businesses AIG Life Relevant Life Insurance A guide for employees and small businesses Life insurance as an employee benefit If you own, run or work for a small business, you can get life insurance without paying

More information

ADVISER GUIDE TO RELEVANT LIFE POLICY AND TRUST FROM VITALITYLIFE

ADVISER GUIDE TO RELEVANT LIFE POLICY AND TRUST FROM VITALITYLIFE ADVISER GUIDE TO RELEVANT LIFE POLICY AND TRUST FROM VITALITYLIFE A Relevant Life Policy provides a lump sum benefit on the death of an employee. It is an alternative way for employers to provide individual

More information

Pension death benefits discretionary trust.

Pension death benefits discretionary trust. retirement annuity contract Pension death benefits discretionary trust. IMPORTANT NOTES before completing this Trust, please read the following notes. 1. This documentation has been produced for consideration

More information

Relevant Life Policy. Trust Deed

Relevant Life Policy. Trust Deed Relevant Life Policy Trust Deed The Relevant Life Policy Trust is provided in draft format for the approval of your (the employer s) legal advisers. The appropriateness of this trust will depend on the

More information

For financial adviser use only. Relevant Life Cover. Adviser guide

For financial adviser use only. Relevant Life Cover. Adviser guide For financial adviser use only Relevant Life Cover Adviser guide What is Relevant Life Cover? This is a tax-efficient way for small businesses to provide death-in-service benefits for their employees and

More information

Financials. Articles and agreements. Professional advisers

Financials. Articles and agreements. Professional advisers Financials Financials for the last 3 years Year Year Year Turnover Gross profit Net profit before tax Profit after tax Dividend No. of employees Value of the business Who calculated value? Year end date

More information

GROUP PROTECTION HELPING YOU UNDERSTAND EXCEPTED GROUP LIFE POLICIES (EGLP).

GROUP PROTECTION HELPING YOU UNDERSTAND EXCEPTED GROUP LIFE POLICIES (EGLP). GROUP PROTECTION HELPING YOU UNDERSTAND EXCEPTED GROUP LIFE POLICIES (EGLP). 2 CONTENTS. Introduction 3 The different types of group life assurance 4 What is an EGLP? 4 What must I remember when I set

More information

KEY PERSON PROTECTION TECHNICAL GUIDE YOUR GUIDE TO KEY PERSON PROTECTION.

KEY PERSON PROTECTION TECHNICAL GUIDE YOUR GUIDE TO KEY PERSON PROTECTION. KEY PERSON PROTECTION TECHNICAL GUIDE YOUR GUIDE TO KEY PERSON PROTECTION. 2 KEY PERSON PROTECTION TECHNICAL GUIDE CONTENTS INTRODUCTION YOUR GUIDE TO KEY PERSON PROTECTION WHAT ARE THE TAXATION EFFECTS?

More information

A Guide to the Discounted Gift Trust

A Guide to the Discounted Gift Trust A Guide to the Discounted Gift Trust > Contents Inheritance tax planning 04 What can the Discounted Gift Trust do for you? 05 Choice of trusts and inheritance tax 06 How does the trust work? 07 Income

More information

DISCRETIONARY TRUST DEED TO USE WITH A SCOTTISH WIDOWS OEIC

DISCRETIONARY TRUST DEED TO USE WITH A SCOTTISH WIDOWS OEIC DISCRETIONARY TRUST DEED TO USE WITH A SCOTTISH WIDOWS OEIC Below are some guidance notes to help you decide whether you should use this discretionary trust. It is very important that you read these before

More information

GIFT TRUST (CREATING FIXED TRUST INTERESTS) ESTATE PLANNING WITH THE GIFT TRUST

GIFT TRUST (CREATING FIXED TRUST INTERESTS) ESTATE PLANNING WITH THE GIFT TRUST GIFT TRUST (CREATING FIXED TRUST INTERESTS) ESTATE PLANNING WITH THE GIFT TRUST THE GIFT TRUST MAY BE SUITABLE FOR YOU IF: You would like to take advantage of the favourable potentially exempt transfer

More information

day of National Insurance Number Postcode

day of National Insurance Number Postcode Flexible Pension Plan/ Personal Pension Plan/ Stakeholder Pension Plan Important please ensure that you have: 1213 Completed Parts A to F Consulted your legal, tax or financial adviser before signing this

More information

Discretionary Trust Deed

Discretionary Trust Deed Discretionary Trust Deed Discretionary Trust Deed What is it? A discretionary trust designed for use with life assurance plans including investment bonds. The settlor (the person creating the trust) cannot

More information

If you would like this information in large print, in braille or on cassette or CD, please call 0845 271 0900. Financial Questionnaire.

If you would like this information in large print, in braille or on cassette or CD, please call 0845 271 0900. Financial Questionnaire. Financial Questionnaire You must fill in this form fully and truthfully to the best of your knowledge and belief. If you do not do this, and this affects our assessment of the risk, your insurance may

More information

Split Trust (Joint Life, First Event) - Discretionary

Split Trust (Joint Life, First Event) - Discretionary Split Trust (Joint Life, First Event) - Discretionary Important notes The trust form is designed for use only with Scottish Provident Self Assurance plans and Pegasus plans, provided the Pegasus plan does

More information

PROTECTION GIFT TRUSTS FLEXIBLE TRUST PACK.

PROTECTION GIFT TRUSTS FLEXIBLE TRUST PACK. PROTECTION GIFT TRUSTS FLEXIBLE TRUST PACK. Technical Guide Flexible Trust Deed 2 PROTECTION GIFT TRUSTS FLEXIBLE TRUST PACK INTRODUCTION This guide has been written to explain what a Flexible Trust is,

More information

PASSING ON YOUR PENSION. A guide to death benefits from income drawdown. Retirement Solutions

PASSING ON YOUR PENSION. A guide to death benefits from income drawdown. Retirement Solutions PASSING ON YOUR PENSION A guide to death benefits from income drawdown Retirement Solutions It s now easier than ever to pass any remaining money in your pension to the people you love when you die. New

More information

For customers Key features of the Relevant Life policy

For customers Key features of the Relevant Life policy For customers Key features of the Relevant Life policy The Financial Conduct Authority is a financial services regulator. It requires us, Aegon, to give you this important information to help you to decide

More information

PROTECTION GIFT TRUSTS DISCRETIONARY TRUST PACK.

PROTECTION GIFT TRUSTS DISCRETIONARY TRUST PACK. PROTECTION GIFT TRUSTS DISCRETIONARY TRUST PACK. Technical Guide Discretionary Trust Deed 2 PROTECTION GIFT TRUSTS DISCRETIONARY TRUST PACK INTRODUCTION. This guide has been written to explain what a Discretionary

More information

SPLIT TRUST (JOINT LIFE, FIRST EVENT) BARE

SPLIT TRUST (JOINT LIFE, FIRST EVENT) BARE SPLIT TRUST (JOINT LIFE, FIRST EVENT) BARE Important notes Please read these notes prior to completion. The following trust form should not be used for pension plans. This version of the split trust is

More information

(you, as Employer have the choice of being a Trustee or not and the Trust could continue if your Employee changes employment)

(you, as Employer have the choice of being a Trustee or not and the Trust could continue if your Employee changes employment) For employers Declaration of trust for a Relevant Life policy (you, as Employer have the choice of being a Trustee or not and the Trust could continue if your Employee changes employment) Page 1 of 12

More information

Flexible Business Trust Deed

Flexible Business Trust Deed Flexible Business Trust Deed The documentation for the Flexible Business Trust is provided in draft format for the approval of your legal advisers. The appropriateness of this trust will depend on the

More information

AIG Relevant Life Insurance Split Trust declaration form

AIG Relevant Life Insurance Split Trust declaration form AIG Relevant Life Insurance Split Trust declaration form Guidance We require that the AIG Relevant Life Insurance be put into trust before the policy is put on risk. This may be done via the AIG Relevant

More information

Discretionary Trust PD (EP)

Discretionary Trust PD (EP) Discretionary Trust PD (EP) for existing Pension Buyout Plans and Retirement Annuity Contracts This trust incorporates By-pass provisions (see Explanatory Notes). Important If you are not sure this form

More information

insurance KEY FEATURES OF THE: RElEvAnT life PlAn important document

insurance KEY FEATURES OF THE: RElEvAnT life PlAn important document INSURANCE KEY FEATURES OF THE: Relevant Life Plan This is an important document which you should keep in a safe place. This is a guide to our Relevant Life Plan and is based on our understanding of current

More information

Provide for your loved ones. A guide to death benefits from your pension plan

Provide for your loved ones. A guide to death benefits from your pension plan Provide for your loved ones A guide to death benefits from your pension plan This guide covers the death benefits from the following plans: Self Invested Personal Pension Group Self Invested Personal Pension

More information

KEY FEATURES OF THE RELEVANT LIFE PLAN.

KEY FEATURES OF THE RELEVANT LIFE PLAN. RELEVANT LIFE PLAN KEY FEATURES OF THE RELEVANT LIFE PLAN. LIFE COVER This is an important document which should be kept in a safe place. 2 RELEVANT LIFE PLAN KEY FEATURES USING THIS DOCUMENT. WHAT ARE

More information

Using your AVC to protect your loved ones. Life Assurance

Using your AVC to protect your loved ones. Life Assurance Using your AVC to protect your loved ones Life Assurance > Of course, none of us want to die before we get to enjoy the freedom of retirement. But what if the worst did happen? You d want your loved ones

More information

A guide to the Loan Trust Your questions answered

A guide to the Loan Trust Your questions answered A guide to the Loan Trust Your questions answered Contents Why might i consider using a loan trust? 3 What is the Loan Trust? 4 How the Loan Trust works 5 Choice of trust 6 The Loan Trust in action 7 Further

More information

Discretionary Split Trust Deed

Discretionary Split Trust Deed Discretionary Split Trust Deed Discretionary Split Trust Deed 2 This trust deed should not be used with plans that provide more life cover than critical illness cover. What is it? A discretionary trust

More information

Self Invested Personal Pension and Group Self Invested Personal Pension

Self Invested Personal Pension and Group Self Invested Personal Pension Self Invested Personal Pension and Group Self Invested Personal Pension Instruction for payment of death benefits Who this form is for You should complete this form to let Standard Life know how you would

More information

EXCEPTED GROUP LIFE POLICY TERMS AND CONDITIONS.

EXCEPTED GROUP LIFE POLICY TERMS AND CONDITIONS. EXCEPTED GROUP LIFE POLICY TERMS AND CONDITIONS. ABOUT THESE TERMS AND CONDITIONS. This document and our quote describe the Excepted Group Life Policy terms and conditions for employers who already insure

More information

Split Trust Discretionary

Split Trust Discretionary Split Trust Discretionary Important notes The trust form is designed for use only with Scottish Provident Self Assurance plans and Pegasus plans, provided the Pegasus plan does not include the cover buyback

More information

Discounted Gift Trust. Guide for financial advisers

Discounted Gift Trust. Guide for financial advisers Discounted Gift Trust Guide for financial advisers Introduction Usually, where an individual gifts an asset into a trust and subsequently they continue to retain access or obtain a benefit from it, it

More information

SHARE PROTECTION TECHNICAL GUIDE YOUR GUIDE TO SHARE PROTECTION.

SHARE PROTECTION TECHNICAL GUIDE YOUR GUIDE TO SHARE PROTECTION. SHARE PROTECTION TECHNICAL GUIDE YOUR GUIDE TO SHARE PROTECTION. CONTENTS INTRODUCTION YOUR GUIDE TO SHARE PROTECTION HOW THE AGREEMENT OPERATES WHAT ARE THE main TAXATION EFFECTS ON THE ARRANGEMENT? OTHER

More information

The Bare Trust for an existing policy

The Bare Trust for an existing policy The Bare Trust for an existing policy This form is suitable for use with our range of onshore life assurance products, including those which were applied for online. All policy benefits will be gifted,

More information

A guide to pension tax

A guide to pension tax A guide to pension tax Footer info Zurich Blue 2 or White Contents About this guide 3 Tax treatment of payments 4 Eligibility to receive tax relief on payments Tax relief on payments made to pension schemes

More information

Pension death benefits discretionary trust.

Pension death benefits discretionary trust. PERSONAL PENSION/STAKEHOLDER/SIPP/BUY OUT PLAN Pension death benefits discretionary trust. IMPORTANT NOTES before completing the Discretionary Trust, please read the following notes. 1. This documentation

More information

POLICY TRUST RELEVANT LIFE FOR USE ONLY WITH PROTECTION FOR POLICIES ESTABLISHED TO PROVIDE RELEVANT LIFE COVER. Policy Number: Life Assured Name:

POLICY TRUST RELEVANT LIFE FOR USE ONLY WITH PROTECTION FOR POLICIES ESTABLISHED TO PROVIDE RELEVANT LIFE COVER. Policy Number: Life Assured Name: RELEVANT LIFE POLICY TRUST FOR USE ONLY WITH PROTECTION FOR POLICIES ESTABLISHED TO PROVIDE RELEVANT LIFE COVER Policy Number: Life Assured Name: Life Assured Date of Birth: Write the date the last person

More information

Onshore Bond for Wrap Key Features

Onshore Bond for Wrap Key Features Onshore Bond for Wrap Key Features This is an important document. Please read it and keep it along with your personal illustration for future reference. The Financial Conduct Authority is a financial services

More information

International Bond Key features

International Bond Key features International Bond Key features This is an important document. Please read it and keep for future reference. Helping you decide This key features document contains important information about the main

More information

SELECT SIPP. Taking pension benefits guide

SELECT SIPP. Taking pension benefits guide SELECT SIPP Taking pension benefits guide Please read this guide in conjunction with the Alliance Trust Savings Handbook and the appropriate Key Features documents. Alliance Trust Savings does not give

More information

Relevant Life Insurance

Relevant Life Insurance Relevant Life Insurance Learning objectives To have an understanding of: 1. What relevant life insurance is and the appropriate target market 2. The tax efficiencies of a relevant life contract 3. How

More information

Aviva Discretionary Trust for Relevant Life Insurance

Aviva Discretionary Trust for Relevant Life Insurance Retirement Investments Insurance Health Retirement Investments Insurance Health Retirement Investments Insurance Health Aviva Discretionary Trust for Relevant Life Insurance The Relevant Life Insurance

More information

Discretionary Split Trust For use with Care Cover and Whole of Life Insurance

Discretionary Split Trust For use with Care Cover and Whole of Life Insurance Discretionary Split Trust For use with Care Cover and Whole of Life Insurance This document is provided for use with AIG Care Cover with Whole of Life Insurance. This Trust can be used for new or existing

More information

Instruction for payment of death benefits

Instruction for payment of death benefits Instruction for payment of death benefits Group Flexible Retirement Plan/ Active Money Personal Pension/ Personal Pension/Stakeholder Pension Filling in this form 0515 Your payments aim to build up a fund

More information

Running your trust A trustee guide to our Flexible Trust

Running your trust A trustee guide to our Flexible Trust Running your trust A trustee guide to our Flexible Trust Contents The purpose of this guide 3 The duties and powers of 4 the trustees Power of Appointment Named (Schedule B) Beneficiaries Power to appoint

More information

International Portfolio Bond for Wrap Key Features

International Portfolio Bond for Wrap Key Features International Portfolio Bond for Wrap Key Features This is an important document. Please read it and keep it along with the enclosed personal illustration for future reference. The Financial Conduct Authority

More information

KEY FEATURES OF THE GROUP PERSONAL PENSION PLAN

KEY FEATURES OF THE GROUP PERSONAL PENSION PLAN KEY FEATURES OF THE GROUP PERSONAL PENSION PLAN The Financial Conduct Authority is a financial services regulator. It requires us, Royal London, to give you this important information to help you to decide

More information

RELEVANT LIFE PLAN PUT LIFE COVER ON EXPENSES.

RELEVANT LIFE PLAN PUT LIFE COVER ON EXPENSES. PUT LIFE COVER ON EXPENSES. Our Relevant Life Plan is a cost efficient way of offering life cover to you or your employees. It s tax efficient and, in most cases, premiums can be treated as an allowable

More information

Lump sum death benefits

Lump sum death benefits Lump sum death benefits This leaflet covers the position on death before age 75 and explains > the effect of legislation on the payment of lump sum death benefits, > possible tax liability for anyone receiving

More information

Flexible trust. Split trust retained and gifted benefits Survivorship option for joint life first death policies Choice of governing law

Flexible trust. Split trust retained and gifted benefits Survivorship option for joint life first death policies Choice of governing law For customers Personal Protection Flexible trust Split trust retained and gifted benefits Survivorship option for joint life first death policies Choice of governing law Page 1 of 9 Completion notes 1.

More information

YOUR GUIDE TO RETIREMENT

YOUR GUIDE TO RETIREMENT YOUR GUIDE TO RETIREMENT www.phoenixlife.co.uk CONTENTS Page Purpose of this guide 3 Your pension options - Buying your pension income (annuity) from us 4 Your pension options - Buying your pension income

More information

Discretionary Loan Plan Trust Deed and Loan Agreement

Discretionary Loan Plan Trust Deed and Loan Agreement Discretionary Loan Plan Trust Deed and Loan Agreement Discretionary Loan Plan Trust Deed What is it? A discretionary trust designed for use with single premium life assurance plans, more commonly known

More information

EXCEPTED UNREGISTERED TRUST DEED

EXCEPTED UNREGISTERED TRUST DEED DATED 2014 EXCEPTED UNREGISTERED TRUST DEED relating to NAME OF SCHEME: One Crown Court 66 Cheapside London EC2V 6LR www.pitmans.com Contents Clause Heading 1. General Interpretation and Definitions 2.

More information

2015 No. 1810 INCOME TAX. The Scottish Rate of Income Tax (Consequential Amendments) Order 2015

2015 No. 1810 INCOME TAX. The Scottish Rate of Income Tax (Consequential Amendments) Order 2015 S T A T U T O R Y I N S T R U M E N T S 2015 No. 1810 INCOME TAX The Scottish Rate of Income Tax (Consequential Amendments) Order 2015 Made - - - - 20th October 2015 Coming into force in accordance with

More information

PROTECTION GIFT TRUSTS ABSOLUTE TRUST PACK.

PROTECTION GIFT TRUSTS ABSOLUTE TRUST PACK. PROTECTION GIFT TRUSTS ABSOLUTE TRUST PACK. Technical Guide Absolute Trust Deed 2 PROTECTION GIFT TRUSTS ABSOLUTE TRUST PACK INTRODUCTION This guide has been written to explain what an Absolute Trust is,

More information

LIMITED LIABILITY PARTNERSHIP SHARE PROTECTION TRUST. (To be used with an application for a new policy only.)

LIMITED LIABILITY PARTNERSHIP SHARE PROTECTION TRUST. (To be used with an application for a new policy only.) BUSINESS PROTECTION LIMITED LIABILITY PARTNERSHIP SHARE PROTECTION TRUST. (To be used with an application for a new policy only.) CHECKLIST Before sending the Trust to Legal & General, have you... 1. Dated

More information

Discretionary Trust (DT)

Discretionary Trust (DT) Discretionary Trust (DT) This form is suitable for use when applying for our range of onshore life assurance products, other than those applied for online. It is only to be used for a current application

More information

We hope you will find this guide useful, but if there is anything you do not understand, or if you need help with your claim, please contact us

We hope you will find this guide useful, but if there is anything you do not understand, or if you need help with your claim, please contact us LYNCH WOOD PARK LYNCH WOOD PETERBOROUGH PE2 6FY WWW.PHOENIXLIFE.CO.UK CLAIM GUIDE When somebody close to you has died and you need to deal with an insurance company, the last thing you need is to be faced

More information

SIPP ISA Dealing Junior ISA SIPP benefi ts guide

SIPP ISA Dealing Junior ISA SIPP benefi ts guide SIPP ISA Dealing Junior ISA SIPP benefits guide Contents Introduction SIPP benefits - the basics Annuity, income drawdown and taxable lump sums the commitments and risks 3 Your benefits options Lump sums

More information

Compulsory Purchase Annuity

Compulsory Purchase Annuity Application form Who this form is for 0615 This form is for people who want to purchase a pension from Standard Life Filling in this form Before completing this form read the Key Features Document (CPA17)

More information

A Guide to the OneFamily Flexible Trust Deed

A Guide to the OneFamily Flexible Trust Deed A Guide to the OneFamily Flexible Trust Deed The trust deed has been designed for use only with a OneFamily Over 50s Life Cover Policy with Serious and Terminal Illness Benefit. The information contained

More information

Life Assurance Policies

Life Assurance Policies clarityresearch Life Assurance Policies Summary 1. Some life assurance policies are not taken out as a means of purely providing life insurance (for this subject, please see the Research Notes in the Protection

More information

Scrip Dividend Scheme Terms and Conditions

Scrip Dividend Scheme Terms and Conditions Scrip Dividend Scheme Terms and Conditions If you are in any doubt about the action you should take with this document, you should immediately consult an appropriate independent advisor duly authorised

More information

PENSIONS REFORM 6 APRIL 2015 YOUR QUESTIONS ANSWERED.

PENSIONS REFORM 6 APRIL 2015 YOUR QUESTIONS ANSWERED. PENSIONS REFORM 6 APRIL 2015 YOUR QUESTIONS ANSWERED. Following Government changes effective on 6 April 2015, there are different ways for anyone over 55 to access their defined contribution pension pots

More information

Taxation of a lump sum death benefit paid to an individual or a James Hay Partnership bypass trust

Taxation of a lump sum death benefit paid to an individual or a James Hay Partnership bypass trust ADVISER FACTSHEET Tech Talk February 2015 Taxation of a lump sum death benefit paid to an individual or a James Hay Partnership bypass trust In light of the Taxation of Pensions Act 2014, this Tech Talk

More information

METLIFE Group Life (INCLUDING FLEXIBLE BENEFITS) Technical Guide

METLIFE Group Life (INCLUDING FLEXIBLE BENEFITS) Technical Guide METLIFE Group Life (INCLUDING FLEXIBLE BENEFITS) Technical Guide 1 MetLife Group Life Policies Technical Guide MetLife has a range of policies aimed to meet your life cover needs in respect of your employees

More information

> How does our With-Profits Fund work? > What are bonuses? > How are regular bonuses worked out?

> How does our With-Profits Fund work? > What are bonuses? > How are regular bonuses worked out? Your With-Profits Plan a guide to how we manage the Fund Conventional With-Profits Plans originally issued by Scottish Amicable Life Assurance Society (SALAS) Your With-Profits Plan is a medium to long-term

More information

Gains on foreign life insurance policies

Gains on foreign life insurance policies Helpsheet 321 Tax year 6 April 2013 to 5 April 2014 Gains on foreign life insurance policies A Contacts Introduction Page 2 Part 1 Types of policy Page 3 What sort of policy do you have? Page 3 When will

More information

A Guide to. Self Invested Personal Pension Schemes (SIPPS)

A Guide to. Self Invested Personal Pension Schemes (SIPPS) A Guide to Self Invested Personal Pension Schemes (SIPPS) Prepared by: John Hebblethwaite APFS CFP Chartered Financial Planner Managing Director May 2011 Contents Introduction... 3 Eligibility... 4 Contributions...

More information

INVESTMENT BOND FACTSHEET 9 SINGLE AND JOINT INVESTMENT BONDS

INVESTMENT BOND FACTSHEET 9 SINGLE AND JOINT INVESTMENT BONDS INVESTMENT BOND FACTSHEET 9 SINGLE AND JOINT INVESTMENT BONDS Life insurance investment bonds and capital redemption bonds can both be established with single or joint owners. For life insurance investment

More information

AIG Life. Relevant Life Insurance. Key Facts

AIG Life. Relevant Life Insurance. Key Facts AIG Life Relevant Life Insurance Key Facts Contents Page Welcome to AIG 3 Section A: About Relevant Life Insurance A1 What is Relevant Life Insurance is 4 A2 How Relevant Life Insurance works 4 A3 Your

More information

The Protection Trust Deed. The Protection Trust

The Protection Trust Deed. The Protection Trust The Protection Trust Deed The Protection Trust For use with International Protector Middle East, International Protector Asia and Global Term products. Important note By using this trust deed, the Settlor

More information

Helping you understand inheritance tax planning. We ll help you get there

Helping you understand inheritance tax planning. We ll help you get there Helping you understand inheritance tax planning investments pensions PROTECTION We ll help you get there As Benjamin Franklin said, In this world nothing is certain but death and taxes. Inheritance tax

More information

Expression of Wishes. Your details. Important notes. Completing this form. Retirement. Health. Retirement Investments Insurance Health

Expression of Wishes. Your details. Important notes. Completing this form. Retirement. Health. Retirement Investments Insurance Health Retirement Investments Insurance Health Retirement Investments Insurance Health Retirement Investments Insurance Health Aviva Retirement Pension Investments Insurance Death Health Benefit Expression of

More information

Annuity Policy. For benefits bought out from an occupational pension scheme or a section 32 buy-out plan

Annuity Policy. For benefits bought out from an occupational pension scheme or a section 32 buy-out plan Annuity Policy For benefits bought out from an occupational pension scheme or a section 32 buy-out plan Please keep this Policy in a safe place, along with the accepted Annuity Quotation, the Statement

More information

The Pension Death Benefits Trust (Scottish Law version)

The Pension Death Benefits Trust (Scottish Law version) For customers The Pension Death Benefits Trust (Scottish Law version) Page 1 of 10 Completion notes 1. This document must only be used if you wish the Trust to be governed by Scottish law. If you wish

More information

INCOME DRAWDOWN DEATH BENEFITS

INCOME DRAWDOWN DEATH BENEFITS For professional advisers INCOME DRWDOWN DETH BENEFITS Pension Portfolio Technical Information It s now easier than ever for your clients to pass on any remaining money in their personal pension or income

More information

AIG Life. Business Protection. Adviser guide

AIG Life. Business Protection. Adviser guide AIG Life Business Protection Adviser guide Contents Page Why a business needs protecting 4 Key person protection 6 Business loan protection 10 Share purchase protection 12 Partnership protection 19 Appendix

More information

TD Direct Investing A Guide to SIPPs

TD Direct Investing A Guide to SIPPs TD Direct Investing A Guide to SIPPs Introduction If you are considering investing for retirement, there are a number of ways to approach it. One way is to embark on the do it yourself (DIY) self investment

More information

Discretionary Trust Declaration form

Discretionary Trust Declaration form Loan Trust Discretionary Trust Declaration form Please use black ink and write in CAPITAL LETTERS or tick as appropriate. Any corrections must be initialled. Please do not use correction fluid as this

More information

Key Features of the Ascentric Pension Account (SIPP)

Key Features of the Ascentric Pension Account (SIPP) Key Features of the Ascentric Pension Account (SIPP) Introduction The Financial Conduct Authority is a financial services regulator. It requires us, Investment Funds Direct Limited (IFDL), to give you

More information