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Adviser Centre

Probate scheme.

The Probate Scheme enables an individual to make an initial cash investment or place an existing investment bond into trust, whilst continuing to benefit from the investment during their lifetime. The Scheme is not effective for inheritance tax (IHT) purposes, since the settlor/donor retains an interest. However, by placing the investment within the trust it ensures that any proceeds on surrender of the bond on death are paid to the trustees, outside of the settlor/donor's estate for probate purposes.

  • Places the proceeds of the investment bond on surrender outside of the estate for probate purposes.
  • Settlor/donor retains access to the investment bond during their lifetime.
  • The probate scheme is ineffective for IHT purposes, though may still be considered a transfer of value.
  • The trust will continue to the end of the trust period (125 years) or until the trust fund has been distributed to the beneficiaries in full.

The value of the bond held within the trust can fall as well as rise and your clients may get back less than they invest.

Contact our technical team

To find out more please talk to your usual Legal & General representative or email our technical team

When sending us emails you should not include any personal, financial or banking details, as these methods are not secure ways of supplying information.