Zurich launches two pension trusts

by Gill Montia

Story link: Zurich launches two pension trusts

Zurich has launched two new pension trusts: the Pensions Discretionary (2 years) Trust and the Pensions Discretionary (80 years) Trust.

Both trusts aim to give customers flexibility in their estate planning.

In the case of the Pensions Discretionary (2 years) Trust, benefits must be paid within two years of death, thus avoiding Inheritance Tax liability.

Alternatively, the Pension Discretionary (80 years) Trust may incur Inheritance Tax liability but allows a lump sum to be invested within the trust for up to 80 years.

The plan can be used to ensure that death benefits are not subject to Inheritance Tax on the subsequent death of the spouse or civil partner.

However, a beneficiary can access the funds via an interest-free loan.

Both trusts are available for new business customers and can be used in conjunction with the Zurich SIPP and Protected Rights Transfer Plan.

The company has also developed a new technical guide to its pension trusts, giving guidance on how the trusts should be completed.