Old Mutual Int’l launches trust campaign for offshore advisers

Old Mutual International has launched a campaign to promote “under-utilised” trusts among offshore advisers and will launch further support tools “shortly”.

Trustability, as the campaign is known, is designed to simplify the writing of trust business for advisers by guiding them through the processes of identifying opportunities, understanding local laws, and obtaining the right trust documentation.

“A trust can be an indispensable financial planning tool to use with clients, both to help mitigate tax, and to help give control over how and when wealth is distributed,” the company said.
“It can deliver a powerful solution when used alongside an offshore bond, which can be held as an underlying asset of the trust.”

When a trust is used to hold an offshore bond it can remove all or part of the proceeds from the bond from a settlor’s estate for UK IHT purposes.

It can also be used by a long term resident of the UK who is not UK domiciled or deemed UK domiciled to create an excluded property trust for their offshore bond.

Provided the settlor places their assets into a trust while they are still non-UK domiciled, these assets will escape future liability for UK IHT as long as they remain in trust and outside of the UK, even if the settlor eventually becomes UK-domiciled.

The website operates along the Isle of Man-based Old Mutual Trust Company, launched in 1999, which accepts Old Mutual International Isle of Man portfolio bonds as an underlying asset for a £390 annual fee.

Rachael Griffin, head of product law and financial planning at Old Mutual International, said: “Trusts have become a fundamental part of wealth management and can help advisers demonstrate the real value of the advice they provide to their customers, however, they are still under-utilised.

“We have launched a trust campaign to help advisers recognise the benefits of using trusts with their customers and to make trust planning simpler to understand.

“We are working on new tools which will help advisers choose the right trust for their client and will be announcing these shortly.”