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Welcome to RL360's

dedicated financial adviser website

For financial advisers only

Not to be distributed to, or relied on by, retail clients

Excluded Property Trust

The Excluded Property Trust can offer UK Inheritance tax (IHT) advantages for a non-UK domiciled individual who may later become deemed UK domiciled.

The Excluded Property 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 their estate for Inheritance Tax purposes and therefore be ineffective as an Excluded Property Trust.

Please see the guide to the Excluded Property Trust for full details.

General features of the trust

  • the trust can have up to two Settlors
  • the trust can be used for existing bonds
  • the trust can accept top-ups, however, the settlor must be non-UK domiciled at the time.

Key points to note

  • The trust should only be used by individuals who are non-UK domiciled for IHT purposes.
  • the Settlor is a beneficiary of the trust
  • RL360 policy is treated as excluded property whilst held inside the trust.

The Excluded Property Trust may be suitable for non-UK domiciled individuals who

  • wish to protect their non-UK assets from UK Inheritance Tax (IHT)
  • wish to retain access to their investments
  • wish to ensure that their policy passes to a nominated beneficiary upon death
  • wish to avoid Manx Probate and ensure policy proceeds can be paid without further cost and delay

Important notes

Please note that every care has been taken to ensure that the information provided is correct and in accordance with our current understanding of the law and practice at Her Majesty's Revenue and Customs (HMRC) as at 6 April 2017. You should note however, that we cannot take on the role of an individual taxation adviser and independent confirmation should be obtained before acting or refraining from acting upon the information given. The law and HMRC practice are subject to change. Legislation varies from country to country and the policyholder's country of residence may impact on any of the above.

Excluded Property Trust Deed

The guide to excluded property trusts