Flexible Gift Trust
For Investment Bond
A Flexible Gift Trust can help your client to reduce the potential inheritance tax due on his or her estate by making an outright gift for the benefit of a wide class of beneficiaries. Because the Trust is written on a discretionary basis, your client can retain maximum control and flexibility in deciding who benefits and when.
Key benefits
- Mitigate inheritance tax liability by making an outright lifetime gift.
- Joint or single settlements can be made.
- Available in conjunction with the Investment Bond.
- Further top-up gifts can be made.
- Existing life insurance investment bonds can be assigned into the Trust,
- For clients who wish to make a gift in their lifetime and retain flexibility and control of the amount gifted.
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Eligibility |
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Features |
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Inheritance tax (IHT) |
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Additional gifts |
Further gifts to the trust will usually be chargeable lifetime transfers but may be exempt from IHT if covered by any of the following exemptions:
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IHT reporting |
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Key documents
Trust deed (PDF, 152KB)
Client brochure (PDF, 62KB)
Important notes for applications (PDF, 66KB)
See all our trust documents in one place, including forms, guides and brochures.
Other information you need
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The Flexible Gift Trust is suitable for clients:
- whose estate is likely to be liable to inheritance tax (IHT) on death, even if maximum use is made of exemptions, reliefs and the nil rate band
- who are able to make an outright, irretrievable gift and have no requirement for access to the gifted amount or the income it generates
- who want the flexibility to decide who should benefit, to what extent and when according to circumstances
- who want control over when the funds are distributed and perhaps the purpose for which they are used
- who would like to ensure that the gifted property is kept within the family and afforded some protection from claims by third parties
- who wish to avoid any delay in distributing the proceeds of their investment which may otherwise arise where probate (or confirmation) is required before payment could be made
- who are prepared to accept the reporting obligations and the possibility of tax charges which apply under the relevant property regime for IHT purposes
Not for your client?
Take a look at our other trust options
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- The Flexible Gift Trust enables your client to make a gift to a wide ranging class of beneficiaries yet maintain flexibility and control over who gets what and when.
- In addition, provided the amount gifted is below your client's available nil rate band, there will be no lifetime IHT payable on creation of the trust.
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The Flexible Gift Trust is designed for use with the Investment Bond
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The Flexible Gift Trust is not subject to any charges.
Please see the Investment Bond
Important notice
Please note that charges, terms and limits may change. We may change the selection of funds that we make available. There may be restrictions on the amount that can be invested in certain funds. Please contact us for details of any restrictions that apply. Tax treatment depends on the individual circumstances of your client and may be subject to change in the future.
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Before you apply
Before proceeding to the application stage you should ensure that your client wishes to set up a Flexible Gift Trust, which is on a discretionary basis.
Should they wish to establish the trust on an absolute basis, please look at our Fixed Gift Trust (creating fixed trust interests)
Please also ensure your client has read the important notes for applications (PDF, 66KB)
The application stages (new investment):
Step 1
- Complete the Flexible Gift Trust (PDF, 152KB) and the Investment Bond (PDF, 63KB) application forms.
- You will then need to print the forms and ensure they are signed by all the relevant parties.
The following items should accompany the application:
- cheque for investment amount
- confirmation of verification of identity of the settlor(s) and all additional trustees
- copy of illustration.
Step 2
- Policy documents will be issued to the trustees.
The Flexible Gift Trust can also be used for existing polices. Should you require any further information, please speak to your usual sales contact.