Generic Links

Beneficiary Trust

The Beneficiary Trust is suitable for plan owners who are non-UK domiciled and who require the plan’s benefits to go to named beneficiaries in the event of death. 

 

Whilst there is nothing to prevent UK domiciled plan owners from also using the trust, it is important to understand that there would be no UK Inheritance Tax (IHT) planning advantages in doing so. 

 

The Beneficiary Trust only comes into effect on the death of the ‘Relevant Person’. The ‘Relevant Person’ is the person on whose death the benefits of the plan become payable. 

 

The trust will be of particular interest to those individuals who want the plan to remain in their own name during their lifetime but would like the plan to pass into trust after their death. This will mean that, assuming at least one of the nominated trustees is still alive on the death of the last surviving plan owner, the costs and delays associated with obtaining Isle of Man Probate would be avoided.

 

General Features of the Beneficiary Trust

  • the trust can have up to two plan owners
  • the trust can be used for existing plans
  • the trust can accept top-ups.

 

The Beneficiary Trust may be suitable for 
non-UK domiciled individuals who

  • wish for their plan to remain in their own name during their lifetime
  • wish to ensure that their plan passes to a nominated beneficiary upon death.

 

Visit our Trust Information & Downloads page for more information and downloadable literature about our trust range.

 

Important Notes 

Please note that every care has been taken to ensure that the information provided is correct and in accordance with our current understanding of the law and practice at HM Revenue and Customs (HMRC) as at June 2019. You should note however, that we cannot take on the role of an individual taxation adviser and independent confirmation should be obtained before acting or refraining from acting upon the information given. The law and HMRC practice are subject to change. Legislation varies from country to country and the plan owner's country of residence may impact on any of the above.