Estate Transfer Bond
Estate Transfer Bond
The Estate Transfer Bond is an offshore insurance bond consisting of a series of non surrenderable unit-linked single premium endowment life assurance policies. The Bond will be divided into 400 identical individual policies of the same amount; the initial investment in each of the policies must be a minimum of £250. The Bond is denominated in Sterling.
The premium will be invested in the permitted investments selected by the policyholder, the appointed adviser or by the appointed Investment Manager. The value of the investments will dictate the value of the Bond.
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, external custodians |
| Withdrawals | No |
| Death Benefit | Surrender Value + £100 |
| Surrender | Not permitted |
| Assignments | Yes (Specially designed bare trust only) - Segment maturities |
| Additional Charges | No Adviser fees |
| Additonal notes | Series of maturing identical policies. Policies can be deferred at maturity (new maturity date posted against the maturing policy) or paid out to beneficiary via part surrender. |
| Charges | Charges will be deducted quarterly on policy anniversary based on the policy value. |
| Minimum Policy Value | £10,000.00 |
| Policy Currency | GBP |
| 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. Adviser charge is not deducted as per usual BAU process, but rather allocated in segments on maturity. CS will receive an instruction from TS to trigger a withdrawal. |