Estate Planning Bond

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For your clients to maintain their lifestyle and gift to loved ones.

As your client gets older, they’ll probably start thinking about how to pass on their wealth to the people they love, whilst retaining an income to maintain their lifestyle.

With the Estate Planning Bond (provided by Utmost Limited), you can help them do both at the same time, in a tax-efficient way.

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WITH THE ESTATE PLANNING BOND YOU CAN HELP YOUR CLIENTS CREATE A TRUST FUND THAT:

  • Could reduce the effect of inheritance tax – on the amount your clients leave for their families
  • Lets them take a tax-deferred income
  • Lets their funds grow free of income or capital gains tax while they are in the bond
  • Can all be managed in one place, with a wide range of investments

The Estate Planning Bond is a combination of a single premium investment bond, based in the Isle of Man, and a discounted gift trust.

It’s a capital redemption bond, which means it can continue for up to 99 years. That gives your clients’ trustees more control and lets the trust fund be used for flexible generational planning.

The Estate Planning Bond can’t be surrendered or assigned during the lifetime of your clients, and income payments can’t be altered once they’re established.

A Regular Income

Your clients can decide how much income they think they’ll need when they set up the bond, then take the set withdrawal monthly, quarterly, half-yearly or yearly.

If they want to, they can choose an increasing income. So the regular payments they get will increase, either in line with a fixed percentage, or in line with the UK Retail 
Prices Index.

A Gift in Trust

To help your clients pass on their wealth, while reducing the effect of inheritance tax, their investment is separated from the rest of their estate using a discounted gift trust. This is then managed by the appointed trustees.

  • An absolute trust
  • A discretionary trust

Your clients may want both an absolute trust and a discretionary trust. If that’s the case, we can set up two separate bonds, one after the other, with the same application form.

The funds in the Estate Planning Bond can grow free of tax while they are held in the bond, with the exception of withholding tax, which is deducted at source from certain funds. And the funds can be switched free of tax too. Tax will usually only be payable on any gains when money is taken out.

That’s not all: your clients’ regular withdrawals could also be tax-efficient. They can take up to 5% of their original investment amount a year, up to a total of 100% of their original investment amount over 20 years, without any immediate tax liability.

To allow even more tax flexibility, and help your clients’ trustees when they eventually come to distribute the fund between the beneficiaries – the Estate Planning Bond is split into a group of individual policy segments, which can all be cashed in individually.

You and your clients can choose the investment approach from our two options:

GUIDED ARCHITECTURE

  • Guided Architecture offers you and your clients access to a select range of funds, which cater to a wide variety of attitudes to risk.

OPEN ARCHITECTURE

  • Have the freedom to choose from the thousands of funds available from some of the world’s leading investment management groups and banks.
  • You can also manage your clients’ portfolios using an investment platform, or you could outsource it to a discretionary manager.

If your client chooses Open Architecture from the start or switches to it at any time, they won’t be able to change to Guided Architecture later.

Fund search

The Estate Planning Bond is designed for single or joint investors. Joint investors need to be either married or in a civil partnership. Investors will get a regular income while there is value in the bond, but should be able to afford to give up access to their capital completely.

Investors must be over the age of 18. This product is underwritten at the start and the maximum age for applicants is 94 (actual age or rated age after underwriting).

The bond is available in pounds sterling, and the minimum investment amount is £50,000.

The Estate Planning Bond is designed for UK residents.

Find the information you need to service and act on investment changes for your clients. You can:

  • Produce pre-sale illustrations
  • Create valuations showing what your clients’ bonds are worth
  • Switch between different funds
  • Show your clients their investments online

ONLINE ILLUSTRATIONS

Once you’ve registered, illustrations are quick and easy to produce. And, using the search facility, you can find any illustrations you’ve already saved quickly and easily. You can also download a print quality version to email on to your clients.

To get an illustration, register with or log in to Utmost online.

PRODUCT LITERATURE

You can find Estate Planning Bond literature in our literature library. Or you can get started now by downloading our client-friendly Product Guide.

Product Guide

EXPERT HELP, A PHONE CALL AWAY

We’re here to talk through the options available. Get in touch with us on

+44 (0) 1624 643 345

or talk to your Regional Sales Manager. Please note that we might record your call to help us improve the service we give you.