International Flexible Trust

This is a simple trust which allows a Settlor to nominate a person(s) who in the event of the policyholder's death should be paid the proceeds of the death claim without the need for obtaining Isle of Man Probate.

General Features of the Trust

• The trust can have up to two Settlors.
• The Settlor/s is automatically included as a trustee.
• The trust can be used for existing bonds.
• The trust can accept top-ups.

Key Points to Note.

• The trust should only be used by individuals who are non-UK domiciled for Inheritance Tax purposes. This is because for individuals who are UK domiciled, the creation of the trust would be a chargeable transfer aswell as a Gift with Reservation.
• The Settlor is a beneficiary of the trust.
• For a non-UK domiciled Settlor, the trust can be used as an Excluded Property Trust.

The International Flexible Trust might be suitable for non-UK domiciled individuals who:

• Wish to retain access to their investments.
• Wish to ensure that their policy passes to a nominated beneficiary upon death.

Important Notes

Please note that every care has been taken to ensure that the information provided is correct and in accordance with our current understanding of the law and Her Majesty's Revenue and Customs (HMRC) practice as at July 2010. You should note however, that we cannot take on the role of an individual taxation adviser and independent confirmation should be obtained before acting or refraining from acting upon the information given. The law and HMRC practice are subject to change. Legislation varies from country to country and the policyholder's country of residence may impact on any of the above.