Our Wealth Preservation Account gives you the best of both worlds – a product that allows you to potentially reduce your inheritance tax liability, while allowing you full access to the trust assets through optional yearly payments. After seven years, your gift into trust moves out of your estate entirely and any investment growth is outside of your estate from day one.
The value of your investment can go down as well as up and you may get back less than you invest. The way investments performed in the past is not a guide to how they’ll perform in the future. Tax rules depend on individual circumstances and may change. Speak to an adviser, if you need more information on tax.
Need an adviser? A financial adviser can help you get a tailored quote for our products. Read up on how to find an adviser and what to expect from the advice process.
Watch a CPD qualifying webinar about our award-winning Wealth Preservation Account.
Our case study demonstrates how our WPA can be used effectively.
The Wealth Preservation Account includes two distinct and separate trusts: (i) The Initial Trust – a bare trust to which you assign legal ownership of the life assurance policies, and
(ii) The Settlement – a discretionary trust to which you assign ownership of all beneficial interests in the life assurance policies, whilst retaining the right to receive the proceeds from each of the maturing policies.
This unique trust structure is designed to help avoid potential challenges from His Majesty’s Revenue and Customs (HMRC) in respect of gifts with reservation, the general anti-abuse rule and pre-owned asset tax legislation.
Yes, HMRC have confirmed that where the trustees differ on both the initial trust and discretionary settlement, two separate registrations must take place. However, where the trustees are the same on both trusts then only one registration is required. It is important to note that where any change occurs on either trust in the future, which means that there is a difference in the legal or beneficial ownership, such as a trustee change which only impacts one trust, then the trust impacted by the change will need to be registered separately. You can find more details about registering your trust at our TRS hub here
You can’t remove a trustee, however, if a trustee refuses to act, or is no longer capable of being a trustee, you can appoint a new trustee in their place.
If a trustee wants to be discharged, they can voluntarily retire as long as there will still be two personal trustees, or one corporate trustee, after the trustee retires. If not, then a new trustee must be appointed to meet the required number of trustees.
If a trustee dies, then we need proof of the trustee’s death, their death certificate would be evidence of this. Again, if this leaves fewer than two trustees, or one corporate trustee, then a new trustee must be appointed to meet the required number of trustees.
Yes, the trustees of the settlement can instruct the trustees of the initial trust to surrender policies before they reach their maturity date and pay the proceeds to your beneficiaries.
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CLI Institutional Limited, registered in the Isle of Man no. 108017C. Registered office: Canada Life House, Isle of Man Business Park, Douglas, Isle of Man IM2 2QJ. CLI Institutional Limited is an Isle of Man registered company authorised and regulated by the Isle of Man Financial Services Authority.
Canada Life International Assurance (Ireland) DAC, registered in Ireland no. 440141. Registered office: Irish Life Centre, Lower Abbey Street, Dublin 1, Ireland Canada Life International Assurance (Ireland) DAC is authorised and regulated by the Central Bank of Ireland. Category A Insurance Permit holder with the Jersey Financial Services Commission.
Canada Life Asset Management is the brand for investment management activities undertaken by Canada Life Asset Management Limited, Canada Life Limited and Canada Life European Real Estate Limited. Canada Life Asset Management Limited (registration no. 3846821), Canada Life Limited (registration no. 973271) and Canada Life European Real Estate Limited (registration no. 3846823) are all registered in England and Wales and the registered office for all three entities is Canada Life Place, Potters Bar, Hertfordshire EN6 5BA. Canada Life Asset Management Limited is authorised and regulated by the Financial Conduct Authority. Canada Life Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.
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