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REVIEW SUMMARY

International Flexible Trust

An international flexible trust allows a non-UK domiciled settlor to nominate a beneficiary to be paid the proceeds of a death claim and can offer UK IHT advantages for non-UK domiciled individuals who may later become deemed UK domiciled.

Overview
FAQ
Customer Reviews
Expert Verdict

An international flexible trust is not suitable for someone who is UK domiciled. This trust has a wide class of beneficiaries, of whom the settlor can be one, and it would therefore be a gift with reservation (a ‘GROB’). It would also form part of a UK domiciled individual’s estate for IHT purposes.

An international flexible trust can have up to two settlors, be used for existing bonds and can accept top-ups.

An international flexible trust can be suitable for non-UK domiciled individuals who want to retain access to their investments and who want to ensure that their policy passes to a nominated beneficiary upon death.

 

 

The Pros

> Potential inheritance tax (IHT) planning benefits
> With the trust being flexible, this gives the trustees the power to appoint monies to any of the beneficiaries. This can be particularly useful for succession planning purposes, as the beneficiaries chosen could be the same as specified in the client’s will.

The Cons

> Not suitable for UK domiciled individuals
> The trust is not suitable for someone who is UK domiciled, as the trust has a wide class of beneficiaries (of which the settlor is one) and it would therefore be a gift with reservation. It would also form part of the client’s estate for UK inheritance tax purposes.
Is the settlor a beneficiary of the trust?

Yes, the settlor is a beneficiary of the trust.

Who is the international flexible trust suitable for?

The international flexible trust may be suitable for non-UK domiciled individuals who wish to retain access to their investments and wish to ensure that their policy passes to a nominated beneficiary upon death.

Have you used an international flexible trust?

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Expert assessment of an international flexible trust

An international flexible trust can be a useful solution, but whether it is applicable has to be determined on a case-by-case basis, as does the case for using trusts in general.

If you already have a trust structure in place and would like a Second Opinion - or, if you are wondering whether the utilisation of a trust could be of benefit to you, contact us.

 

NOTE: Because trusts are so unique to each individual, it’s impossible to give them a rating for their overall performance and suitability. Therefore these reviews do not come with a star rating.

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