Estate Control Bond

The Estate Control Bond is an offshore insurance bond consisting of a series of unit-linked single premium endowment life assurance policies. Some benefits may be gifted for inheritance tax purposes. The Bond will be divided into identical individual policies and you may elect to have the Bond divided into up to 100 policies of the same amount and is denominated in Sterling.

The premium will be invested in the collective funds selected from time to time by the policyholder, the appointed adviser or the investment manager.

The bond aims to:

To provide capital growth over the medium to long- term.
To provide the option to take the proceeds of sequential maturing policies from the Bond and the option to extend the maturity dates of those policies.
To provide a sum assured payable on the death of the last life assured.
To reduce potential inheritance tax liabilities by using a discretionary trust.

Basic Features

Investments	Collective Investments/UK assets, Discretionary Managers, Platforms.
Withdrawals	1.5% (max) bond value per annum (Professional Trustees and Advisers only). Following the death of the settlor, withdrawals are not restricted, subject to minimum policy value.
Death Benefit	Surrender Value + £100
Surrender	Yes – but NOT for the settlor, spouse or civil partner.
Assignments	Yes – but if not all segments, only if being surrendered at the same time.
Additional Charges	Adviser fee - 1% (max) value of bond (p.a.) which is deemed a withdrawal and is included in the 1.5% referred to above.
Segment Maturities	Series of maturing identical policies. Policies can be deferred by the trustees prior to maturity (new maturity date posted against the maturing policy, same DD/MM) or paid out to the settlor. There can be a combination of both on each segment.
Charges	Deducted quarterly on policy anniversary based on the policy value, together with a monetary charge.
Policy Currency	GBP
Cash Account Minimum	The Cash Account must be kept in credit with a minimum of 2.00% of the value of the Portfolio or with any other minimum value agreed.
Advisers	Combination of broker only, adviser (ongoing adviser charge applied) and self advised.

Further Notes

The discretionary trust used means:

At outset it is a Chargeable Lifetime Transfer for IHT
Periodic and exit charges can apply
Surrenders need to be included in the 10 year valuation for the periodic charge calculation
Maturities for the settlor are NOT included for the periodic charge calculation
The trustees can surrender segments to pay any tax due

Pre RDR with a living settlor, need to be endorsed to allow withdrawals if Adviser Fees are requested

Estate Control Bond