Transact is set to launch a flexible reversionary trust (FRT) this summer that will be able to hold Transact’s offshore bond, based in the Isle of Man, as well as its onshore bond.
The adviser investment platform told IA it is creating the trust in response to increased adviser demand for solutions to mitigate against inheritance tax (IHT) in the UK, particularly with pensions being brought into the scope of the tax from April 2027, and it intends to launch it by the summer.
Like many platforms and advice groups, Transact said it has seen increased interest in both onshore and offshore bonds and trust planning from advisers to help shield clients’ estates from IHT.
Flexible reversionary trusts allow clients to gift a lump sum into a discretionary trust (typically an investment bond), allowing them to keep taking pre-scheduled capital payments, with the initial investment falling outside the individual’s estate after seven years while investment growth falling outside the estate immediately.
Andrew Cullen-Jones, chief development officer at Transact, told IA: “We have seen significant increases in adviser interest in both our in-house onshore and offshore bond solutions as a result of the seismic impending changes to the treatment of pensions for IHT purposes.
“This new development adds to our existing trust proposition, supported by our well-regarded technical team”.
