The new product, the Freezer Trust, has been developed to as a complement to its QROPS, The Overseas Pension.
According to Fairbairn, the trust is primarily designed to receive death benefits payable from a QROPS when a couple have moved abroad and one suddenly dies, prompting the surviving spouse to return to the UK.
In such cases, the payment of the death benefits into the Freezer Trust keeps the QROPS benefits separate from the spouse or dependant’s other assets – so avoiding a potential IHT charge. These assets would then be held in the Freezer Trust until the death of the remaining spouse. In addition, the surviving spouse will be able to receive funds from the trust as and when required.
David Higgins, head of The Overseas Pensions’ technical department said: “We have always viewed QROPS as a long-term generational planning opportunity, and our Freezer Trust further enhances this position.”
