Cautious multi asset income fund recommendations

bostonerimus

The situation seems to be similar to the US. Basically putting a life insurance policy inside a trust is a way to reduce the size of the estate and also inheritance tax. It's also a way to provide some cash if most of the estate is in things like land/property to pay taxes and estate costs without having to sell up. However, permanent life insurance is still sold in the US by some shady agents as a way to fund retirement when most people would be better off using regular pensions and tax advantaged accounts outside the life insurance wrapper.

londoninvestor

dunstonh wrote: »

So, that really only leaves trusts nowadays.

Is it fair to say that the taxation on trusts (45% rate on income, tax charge on every 10th anniversary) makes this less attractive than it used to be?

dunstonh

londoninvestor wrote: »

Is it fair to say that the taxation on trusts (45% rate on income, tax charge on every 10th anniversary) makes this less attractive than it used to be?

Investment bonds dont have income. Its one of the things in the pros column. However, trusts are certainly less common than they used to be. Taxation and the restrictions put in place have reduced their use. They can be viable but not as much as they used to be.