International Flexible Trust
The FPIL International Flexible Trust is designed to assist non-UK domiciled policy holders with their succession planning objectives.
Issues for consideration
- The trust is not suitable for someone who is UK domiciled, as the trust has a wide class of beneficiaries (of which the settlor is one) and it would therefore be a Gift with Reservation. It would also form part of the client’s estate for UK inheritance tax purposes.
- The International Flexible 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 policy is owned by a company or a trust.
- If it is decided at a later date that 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
- After the death of the client, if there are surviving lives assured, or the policy 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.