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Royal Skandia Best Start in Life Trust

Royal Skandia Best Start in Life Trust. For Financial Adviser use only. Best Start in Life Trust. School fees University costs Deposit on house First car Wedding. Financial help to support parents. Aimed at grandparents, aunts & uncles. dilemma. Unlike a bare trust the benefits .

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Royal Skandia Best Start in Life Trust

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  1. Royal Skandia Best Start in Life Trust For Financial Adviser use only

  2. Best Start in Life Trust School fees University costs Deposit on houseFirst car Wedding Financial help to support parents Aimed at grandparents, aunts & uncles

  3. dilemma Unlike a bare trust the benefits do not have to be paid outby a certain age! The 18-year-old

  4. ...also no stock marketinvestment needed Bank accounts Cash funds The Best Start In Life Trust

  5. Investment selection Structured products Exchange traded funds Cash deposits UK authorised unit trusts & OEICs UK investment trusts

  6. School fees areincreasing above inflation The Best Start In Life Trust Mortgagedeposits have increased in recent years University fees are typically around £8,900

  7. Types of Trusts Discretionary Bare Flexible Fixed CLT - 7years PET - 7 years Taxation of bonds Taxation of bonds Settlor Beneficiary UK Trustees Unless parental trust £100+ UK beneficiaries

  8. If the Trustees encash within DiscretionaryTrust then taxon Settlor Rememberminor cannot encashsegments themselves Assignments

  9. Appointment Original value £100,000 across ten policies 1 2 3 4 5 6 7 8 9 10 Grown to £150,000 across ten policies 1 policy is assigned to a bare Trust Trustees then encash the policy Chargeable gain = £15,000 - £10,000 = £5,000 (below personal income tax allowance, assuming no other income)

  10. Types of Trusts Discretionary Bare Flexible Fixed CLT - 7years PET - 7 years Taxation of bonds Taxation of bonds Settlor Beneficiary UK trustees Unless parental trust £100+ UK beneficiaries

  11. Then the important question... ...who should be the trustees?

  12. Avoid personal/ family conflicts No need to open trust bank accounts Corporatetrustees donot die:continuity Ease of administration: dealing, form-filling, trust records Independent impartial Corporate Trustees Professional: reduces shams and breaches Low cost fees deductedfrom bond Centralcontact point Trust developments

  13. Royal Skandia Trust Company The professionaltrustee servicewhich includes... The creation of the trust Additions to the trust fund Completion of forms and arranging the payment of any tax due under a discretionary trust Simple winding up of a trust Loan facility Distributions Yearly trust reviews Investmentreviews £300.00 (plus VAT) annually in arrears £300.00(plus VAT) £200.00

  14. Royal SkandiaTrust Company So client doesn’t have to open a separate bank account Trustee account included

  15. Can beupdated atanytime during settlor’s lifetime Detail ofsettlor’s wishes following death Letterof wishes

  16. Cash Unit trusts OEICs Investmenttrusts Exchangetraded funds Structuredfunds Royal Skandia Collective Bond Unit trusts/ OEICs Deposit accounts Investmenttrusts

  17. This presentation has been designed to be issued to authorised financial advisers. It should not be issued to or relied upon by existing or potential clients of Skandia. Skandia cannot accept responsibility for any losses arising from actions taken as a result of the information contained in this presentation. Further details of Skandia products can be obtained from the appropriate product guides which are available from any Skandia office. Calls may be monitored and recorded for training purposes and to avoid misunderstandings. www.skandiainternational.com Royal Skandia Life Assurance Limited is registered in the Isle of Man under number 24916C. Registered and Head Office: Skandia House, King Edward Road, Onchan, Isle of Man, IM99 1NU, British Isles. Phone: +44 (0)1624 655 555 Fax: +44 (0)1624 611 715. Authorised and regulated by the Isle of Man Insurance & Pensions Authority. Authorised and regulated by the Financial Services Authority for business conducted in the UK. Some of the FSA’s rules do not apply to non-UK based insurers. FSA Register number 142309. www.fsa.gov.uk/pages/register. Royal Skandia Trust Company Limited is registered in the Isle of Man under number 095926C. Registered and Head Office: PO Box 142, Skandia House, King Edward Road, Onchan, Isle of Man, IM99 3DJ, British Isles. Phone: +44 (0)1624 655 456 Fax: +44 (0)1624 655 930. Licensed and regulated by the Financial Supervision Commission of the Isle of Man. Royal Skandia is a member of the Association of International Life Offices. INT12-0801/July 2012

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