Legacy Gift Plan
Legacy Gift Plan
The Legacy Gift Plan is an offshore insurance Bond consisting of a series of non surrenderable unit-linked single premium endowment life assurance policies. The Plan is designed for someone looking to reduce their potential inheritance tax (IHT) liability and who is able to give away a sum of money in order to do so.
The Bond will be divided into 99 identical individual policies.
The Bond has the option for you to choose a series of maturity dates for individual policies, provided such dates are before the Child Beneficiary’s 18th birthday.
After the Child Beneficiary’s 18th birthday withdrawals may only be made by way of an annual partial surrender of up to 5% of the remaining original capital.
The Bond is denominated in Sterling. The premium will be invested in the collective funds which are selected by the policyholder, the appointed Adviser or the investment manager.
The Bond is non-surrenderable until the selected Final Vesting Date, which must be specified at outset and can be no later than the Child Beneficiary’s 49th birthday. This means that i) prior to the Child Beneficiary’s 18th birthday, proceeds may only be paid as policies mature (if you have selected this as an option), and ii) following the Child Beneficiary’s 18th birthday proceeds may only be paid by way of an annual partial surrender of up to 5% of the premium paid, or on a death claim.
Basic Features
| Investments | Collectives/UK Assets/Discretionary Managers/Platforms. |
| Withdrawals | Based on individual policy maturity dates until Child Beneficiary reaches 18 years. Annual Partial Surrenders only (5% remaining capital - maximum) thereafter |
| Death Benefit | Bond Value + GBP100 |
| Surrender | Not until final vesting date |
| Assignments | Yes, following the vesting date, the 1% beneficiary can assign their share to the 99% beneficiary |
| Additional Charges | Adviser Fee – 1% (max) value of bond (p.a.) |
| Segments | 99 identical policies are issued |
| Policy Currency | GBP |
| Advisers | Combination of broker only, adviser (ongoing adviser charge applied) and self advised |
| Charges | Minimum fixed admin charge applied to policies, Charges will be deducted quarterly on policy anniversary based on the policy value. |
| 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 |