Zurich launches new individual pensions trusts

Zurich has launched two new individual pensions trusts, the Pensions Discretionary (2 years) Trust and the Pensions Discretionary (80 years) Trust.

The new trusts are designed to provide advisers and their clients with greater control, flexibility and peace of mind to ensure effective estate planning.

Commenting on the launch of the new trusts, Dave Lowe, Pensions Management Director said, "Individual pension trusts are an important retirement planning area for financial advisers and Zurich is pleased to support this expanding market with innovative solutions. Choice, control and flexibility are crucial factors for clients and by developing these new trusts we endeavour to make it easier to help consumers understand the complexities around trust planning."

The Pensions Discretionary (2 year) Trust forces benefits to be paid within 2 years of death, resulting in no IHT liability.

Alternatively The Pension Discretionary (80 year) Trust should be considered when it may not be appropriate to pay out benefits within two years of the member's death, for example where it may be advantageous to avoid the death benefits being subject to IHT on the subsequent death of the spouse or civil partner. Though this may incur an IHT liability, the lump sum can then be retained and invested inside the trust for up to 80 years and allows the spouse access to the benefits if required via an interest free loan.