Estate Control Bond
Estate Control Bond
The Estate Control Bond is an offshore insurance bond consisting of a series of unit-linked single premium endowment life assurance policies. Some benefits may be gifted for inheritance tax purposes. The Bond will be divided into identical individual policies and you may elect to have the Bond divided into up to 100 policies of the same amount and is denominated in Sterling.
The premium will be invested in the collective funds selected from time to time by the policyholder, the appointed adviser or the investment manager.
The bond aims to:
- To provide capital growth over the medium to long- term.
- To provide the option to take the proceeds of sequential maturing policies from the Bond and the option to extend the maturity dates of those policies.
- To provide a sum assured payable on the death of the life assured.
- To reduce potential inheritance tax liabilities.
Basic Features
| Investments | Collective Investments/UK assets, Discretionary Managers |
| Withdrawals | 1.5% (max) bond value per annum (Trustees only) |
| Death Benefit | Surrender Value + £100 |
| Surrender | Yes |
| Assignments | Yes (Specially designed bare trust only) - segment maturities |
| Additional Charges | Adviser fee - 1% (max) value of bond (p.a.) which is deemed a withdrawal. |
| Additonal notes | Series of maturing identical policies. Policies can be deferred at maturity (newmaturity date posted against the maturing policy) or paid out to beneficiary via part surrender. |
| Charges | deducted quarterly on policy anniversary based on the policy value. |
| Minimum Policy Value | £10,000.00 |
| Policy Currency | All GBP Bonds |
| Cash Account Minimum | The Cash Account must be kept in credit with a minimum of 2.00% of the value of the Portfolio or with any other minimum value agreed. |
| Advisers | Combination of broker only, adviser (ongoing adviser charge applied) and self advised. |