Clients of Old Mutual International in Singapore will now be able to provide a lump sum on death to pay a UK inheritance tax (IHT) bill by using a trust option rolled out in the city state on 6 September.
The trust option forms part of OMI’s existing Silk Life Plan and provides “a flexible way to achieve a balance between access to capital and UK inheritance tax planning”, the firm said.
The goal is to enable clients to pass on as much of their wealth as possible.
Two pay outs on death
The Silk Life Plan is OMI’s variable universal life product that aims to achieve both protection and investment growth.
Instead of cash, policyholders can fund premiums by transferring existing assets, such as private company shares, mutual funds and stocks.
By placing the Silk Life Plan into the trust, two distinct elements can be paid out on death: the policy value to leave as part of an estate and the death benefit to cover any UK IHT bill.
The combination of the Tailored Life Trust with the high death benefit Silk Life Plan allows clients to retain access to their capital, as well as providing a death benefit for family or loved ones that could be used to cover UK inheritance tax, OMI said.
‘Compelling proposition’
Ian Kloss, chief executive of OMI in Singapore, said: “We’re really pleased to be launching the new Tailored Life Trust in Singapore.
“The compelling proposition provides clients with a flexible solution that allows them to continue to access their capital while also making provisions for a UK IHT bill.
“While the Silk Life Plan already offered a high death benefit, the addition of the Tailored Life Trust means that beneficiaries don’t need to be worried about the burden of UK IHT,” Kloss said.
