A trust aimed at people who want to pass their wealth on to their family with reduced inheritance tax liability has been extended to the UK.
Skandia has launched The Best Start in Life trust, which it calls a tax-efficient planning solution.
It was previously available only to the international market.
The firm said it combines the flexibility and control of a discretionary trust, with the option to use a bare trust, if necessary, to improve tax efficiency when distributing the trust fund.
It is designed to appeal to people, such as grandparents, who wish to pass part of their wealth onto beneficiaries, therefore reducing the inheritance tax liability on their own estate.
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Phil Carroll, Financial Planning expert at Skandia, said: "The trust has proved extremely popular in our international markets, so we decided to extend this to our UK platform. "While often perceived as complicated, clever use of trusts can result in significant savings, especially for those who are conducting estate planning.
"This trust allows trustees to reduce the tax liabilities for the settler or the beneficiary by using just one flexible tax-efficient solution."
After investing in the SIS Collective Investment Bonds (CIB), to ensure any growth sits outside of the individual's estate, the investment can be assigned to 'The Best Start in Life' trust. Initially set up as a discretionary trust, the settler does not have to nominate beneficiaries from the outset or specify specific entitlements to be paid out in the future; however, legal ownership is transferred to the trustees. Additionally the settler may choose to complete a 'letter of wishes' giving guidance to the trustee on how to divide the capital.