Isle of Man Probate Trust

This is a simple trust which allows the Settlor/Beneficial Owner access to his or her investment during their lifetime. The sole purpose of the trust is to avoid Manx Probate.

General Features of the Trust

• The trust can have up to two Settlors/Beneficial Owners.
• The trust can be used for existing bonds.
• The trust can accept top-ups.

Key Points to Note

• The creation of the trust is neither a Potentially Exempt Transfer or a Chargeable Transfer.
• The Beneficial Owner is the sole beneficiary.
• If the policy is written on a sole life assured basis, it allows the policy proceeds to be paid to the Beneficial Owner’s estate without the need for Manx Probate. Alternatively, if the policy was written on more than one life assured, the policy can be transferred into the name of a chosen beneficiary (named in the Beneficial Owner's will or via the laws of intestacy) without the need for Manx Probate on the death of the Beneficial Owner.
• The trust will come to an end upon the death of the Beneficial Owner.

The Isle of Man Probate Trust might be suitable for individuals who:

• Want to retain access to their investment.
• Wish to avoid Manx Probate and ensure policy proceeds can be paid without further cost and delay.
• Do not wish to create a chargeable transfer or a potentially exempt transfer.

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.