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