Royal Skandia Best Start in Life Trust

For Financial Adviser use only

Best Start in Life Trust

Financial help to support parents

School fees University costs Deposit on houseFirst car Wedding

Aimed at grandparents, aunts & uncles

dilemmaThe 18-year-old

Unlike a bare trust the benefits

do not have to be paid outby a certain age!

...also no stock market

investment needed

The Best Start In Life

Trust

UK authorised unit trusts & OEICs

UK investment

trusts

Exchange traded funds

Structured products Cash

deposits

selectionInvestment

School fees areincreasing above inflation

University fees are

Mortgagedeposits have

typically around £8,900

increased in recent years

The Best Start In Life

Trust

Types of Trusts

Discretionary

Flexible

CLT - 7years

Settlor

UK Trustees

UK beneficiaries

Taxation of bonds

Bare

Fixed

PET - 7 years

Beneficiary

Unless parental trust £100+

Taxation of bonds

Assignments

If th

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es

enca

sh w

ithin

Dis

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ry

Trus

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n ta

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on S

ettlo

r

Rem

embe

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min

or c

anno

t

enca

shse

gmen

ts

them

selv

es

Appointment

1

Trustees then encash the policy

Grown to £150,000 across ten policies

Original value £100,000 across ten policies

1 policy is assigned to a bare Trust

Chargeable gain = £15,000 - £10,000 = £5,000

2 3 4 5 76 8 9 10

(below personal income tax allowance, assuming no other income)

Types of Trusts

Discretionary

Flexible

CLT - 7years

Settlor

UK trustees

UK beneficiaries

Taxation of bonds

Bare

Fixed

PET - 7 years

Beneficiary

Unless parental trust £100+

Taxation of bonds

Then the important question......who should be the trustees?

Corporate Trustees

Independent impartial

Corporatetrustees do

not die:continuity

Trust developments

Professional:reduces shams

and breaches

Centralcontact point

Ease of administration:dealing, form-

filling, trust records

No need to open trust

bank accounts

Avoid personal/

family conflicts

Low cost fees deductedfrom bond

Royal Skandia Trust Company

£200.00£300.00

(plus VAT)

Investmentreviews

The professionaltrustee servicewhich includes...

Completion of forms and arranging the payment of any tax due under a discretionary trust

Simple winding up of

a trust

£300.00 (plus VAT) annually in arrears

So client doesn’t have to open a separate bank account

Trustee account included

Royal SkandiaTrust Company

Letterof wishes

Can beupdated at

anytime during settlor’s lifetime

Detail ofsettlor’s wishes

following death

Investmenttrusts

Unit trusts/ OEICs

Exchangetraded funds

Deposit accounts

Structuredfunds

Royal Skandia Collective Bond

Cas

hU

nit t

rust

sO

EIC

sIn

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ttr

usts

This presentation has been designed to be issued to authorised financial advisers.It should not be issued to or relied upon by existing or potential clients of Skandia.

Skandia cannot accept responsibility for any losses arising from actions taken as a result of the information contained in this presentation.Further details of Skandia products can be obtained from the appropriate product guides which are available from any Skandia office.

Calls may be monitored and recorded for training purposes and to avoid misunderstandings.

www.skandiainternational.comRoyal Skandia Life Assurance Limited is registered in the Isle of Man under number 24916C. Registered and Head Office: Skandia House, King Edward Road, Onchan, Isle of Man, IM99 1NU, British Isles. Phone: +44 (0)1624 655 555 Fax: +44 (0)1624 611 715.

Authorised and regulated by the Isle of Man Insurance & Pensions Authority. Authorised and regulated by the Financial Services Authority for business conducted in the UK. Some of the FSA’s rules do not apply to non-UK based insurers. FSA Register number 142309. www.fsa.gov.uk/pages/register.

Royal Skandia Trust Company Limited is registered in the Isle of Man under number 095926C. Registered and Head Office: PO Box 142, Skandia House, King Edward Road, Onchan, Isle of Man, IM99 3DJ, British Isles. Phone: +44 (0)1624 655 456 Fax: +44 (0)1624 655 930.

Licensed and regulated by the Financial Supervision Commission of the Isle of Man. Royal Skandia is a member of the Association of International Life Offices.

INT12-0801/July 2012