WAY Estate Transfer Plan
WAY Estate Transfer Plan
The WAY Estate Transfer Plan is an offshore insurance Bond consisting of a series of non-surrenderable unit-linked single premium endowment life assurance policies.
The Bond will usually be divided into 400 identical individual policies of the same amount, as long as the initial investment in each of the policies is a minimum of £125. The Bond is denominated in Sterling.
The premium will be invested in the funds managed by WAY Fund Managers which are selected from time to time by the policyholder or the appointed Adviser.
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 using a bare trust.
Basic Features
| Investments | Collectives/UK Assets/Discretionary Managers, Platforms |
| Withdrawals | No, only the proceeds of maturing policies can be paid out as they reach their individual maturity dates. |
| Death Benefit | Bond Value + GBP100 |
| Surrender | Not permitted |
| Assignments | Yes, it is possible to assign a maturity benefit to a beneficiary. There is a separate specimen form to enable this. |
| Additional Charges | No Adviser fees as withdrawals, but by pre-approved policy maturity. |
| 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 donor(s). |
| Charges | Charges will be deducted quarterly on policy anniversary based on the policy value, together with a monetary charge. |
| 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 as agreed. |
| Policy Currency | GBP |
| Advisers | Combination of broker only, adviser and self advised. |
Further Notes
- As the maturities are absolutely ‘carved out’ for the donor(s), if they agree to a deferment then this is treated as a further Potential Exempt Transfer based on the value of those policies at the time
- It is possible for the donor(s) to be underwritten to ascertain their life expectancy, this could then provide a discounted value for the gift for IHT. There is a charge for underwriting.