Investors will now be able to put mutual fund investments into trust wrappers where previously only onshore and offshore bonds were permitted.
Individuals will be able to save monthly or on a one-off basis into a unit trust or oeic and benefit from any growth in the value of the funds being outside the individual’s estate for iht purposes. The capital value of the gift falls outside the individual’s estate after 7 years.
Standard Life head of estate planning Julie Hutchison says: “This launch marks a big step forward from the traditional life office approach of only linking an investment bond with trust planning. It will offer much greater flexibility to individuals than ever before.”