Zurich announces new addition to its trust range

Following a comprehensive review of its trust proposition, Zurich, through its investment brand Sterling, has now launched another new trust to give intermediaries and their customers more choice for inheritance tax (IHT) planning.

Available immediately, the Sterling Discretionary Loan Plan Trust has been introduced in response to the changes to the taxation of some trusts following the Finance Act earlier this year.

The trust can be used with the Sterling Investment Bond and together they ensure that future investment growth remains outside of the settlor’s estate for Inheritance Tax purposes.

Unlike some other trusts, such as bare trusts, a discretionary trust offers flexibility. Changes to the beneficiaries can be made at any time during the trust period, and none of the trust fund is included in any of the beneficiaries’ estates for IHT purposes. Alternatively the existing bare trust version (Sterling Loan Plan (Bare) Trust) is a suitable option for those who are prepared to fix their beneficiaries and make no changes to them, but want to avoid the IHT treatment that applies to discretionary trusts.

This enhanced trust proposition demonstrates Zurich’s ongoing commitment to offering intermediaries and their customers a choice of solutions that respond to the changing world we live in.

The range now includes three bare trusts and three discretionary trusts available with Sterling’s Investment Bond and a bare and discretionary trust for use with Zurich’s Whole of Life Plan (which now offers both reviewable and guaranteed premium payment options).

Paul Wright, Zurich’s Investment Management Director, comments: “The launch of our new Discretionary Loan Plan Trust completes our review of our core trust proposition following the changes in the Finance Act. As IHT affects a growing number of people in the UK and becomes an increasingly important part of the financial planning process, we are now able to offer intermediaries and their customers a wide choice of market leading solutions to mitigate a potential IHT liability.”