View more on these topics

Skandia urges advisers to use a trust or face higher charges

Skandia International has warned offshore advisers that their clients could risk being hit by higher tax charges than necessary by not using a trust.

According to research by the firm, only 5 per cent of more than 250 offshore advisers surveyed globally stated that they use trusts for the majority of their clients.

Three-quarters of advisers say they use trusts for just 10 per cent of their clients.

Forty per cent cite inheritance tax planning as the top reason to use a trust, with asset protection from creditors following closely behind. But trusts can also be used to cover other asset classes such as life insurance policies, direct investments and property.

SI says that by not writing assets into a trust, investors could be putting themselves at risk of having to pay higher tax charges than they need had they used a trust in their financial planning.

Skandia International head to product law and financial planning Rachael Holland says: “Trusts are viewed by many to be complicated which perhaps is why few offshore advisers use them. They need not be complicated and are relevant to the majority of clients that seek financial planning.”

Recommended

Mutuals’ profits heavily hit by FSCS levy

Both the Skipton and Norwich & Peterborough have revealed that their group profits are almost half what they would have been due to the large increase in their FSCS levies.

Resolution eyes Pru UK insurance

Clive Cowdery’s Resolution has reportedly approached Prudential about a potential deal to buy its UK insurance business.

Brexit Commentary from Natixis Global Asset Management

By David F Lafferty, CFA, SVP – Chief Market Strategist Thursday’s historic Leave vote in the UK will have both immediate and long-term consequences for the global economy and financial markets. The initial flight-to-quality reaction across asset classes has been exacerbated by the market’s misplaced confidence in a Remain victory leading up to the vote. Stock markets […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment