Isle of Man Probate Trust
The FPIL Isle of Man Probate Trust is designed for those individuals who wish to avoid the need for obtaining Isle of Man Probate upon their death. This allows the policy proceeds to be paid without undue delay.
If the client is UK domiciled, then upon the client’s death, the value of the policy is included in his or her estate for UK Inheritance Tax (IHT) purposes.
The FPIL Isle of Man Probate Trust is designed for those individuals who wish to avoid the need for obtaining Isle of Man Probate upon their death. This allows the policy proceeds to be paid without undue delay.
If the client is UK domiciled, then upon the client’s death, the value of the policy is included in his or her estate for UK Inheritance Tax (IHT) purposes.
Issues for consideration
- The Isle of Man Probate Trust can be used with a new application for an FPIL policy, or with an existing FPIL policy. However, this cannot be used where the existing plan is owned by a company or a trust.
- If it is decided at a later date that the client no longer wishes to have the policy in the trust, then the trustees can assign the ownership of the policy back to the client.
- Upon the death of the client, the trustees are bound by the terms of the clients will or the laws of intestacy as to who they can distribute the proceeds of the policy to.
- If there are surviving lives assured, or the plan is written on a capital redemption basis, the trustees can assign the ownership of the policy or policy segments to a beneficiary aged 18 or over.
- If the client is UK domiciled, please note that the trust does not provide any UK Inheritance Tax (IHT) benefits. The value of the policy will form part of the client’s estate for UK IHT.