IOMA Group launches tax efficient estate planning tool


IOMA Group, the specialist provider of services to the insurance and wealth management industries, today announces the launch of its Legacy Gift Plan, the latest addition to its suite of estate planning tools.

Legacy Gift Plan is a tax efficient and controlled way to gift a sum of money* to a beneficiary who is under the age of 18. A donor, such as a grandparent, sets up a gift plan for a chosen child beneficiary using a Bare Trust. The donor appoints trustees to administer the trust and also appoints a responsible adult beneficiary to help ensure the child does not gain access to the trust too early.

The child beneficiary does not automatically receive the money on their 18th birthday. The donor instead specifies certain dates at which point policies will mature for the benefit of the child beneficiary and may be used for such purposes as school fees. After the child beneficiary reaches the age of 18, up to five percent of the original capital remaining can be distributed to the child beneficiary each year. The child beneficiary will then gain full access to the trust fund on the date determined by the donor at outset. This can be no later than the child beneficiary’s 49th birthday.

The Legacy Gift Plan allows the donor to invest in an extensive range of investment options which, subject to certain withholding tax, can accumulate tax free. Investments can be selected via an appointed adviser or a discretionary manager.

Commenting on the launch of the Legacy Gift Plan, Robin Bigland, Chairman, IOMA Group, said:

“We are confident that this is the most flexible and best priced product of its sort in the market. It provides ultimate flexibility over how, when and how much the beneficiary receives from the trust. It offers tax efficient planning in terms of funding for education without giving the beneficiary full access to the Trust at age 18, as well as creating a potentially exempt transfer for IHT purposes.

“This is the first of a number of innovative initiatives that will be launched by IOMA Group to help our clients manage their wealth as effectively and efficiently as possible.”