Being able to discuss the technicalities of this case with Stacey at Legal & General was one of the overriding reasons why they were the recipient of the business. As providers look to cut costs, many are abandoning accessible technical back-up and this has meant that IFAs feel somewhat loathed to place business with them. My discussions with Stacey helped me feel confident about this case and ultimately recommend Legal & General as a solution.
The Loan Scheme allows a person (the donor/settlor) to make a loan to a trust, which is invested in a bond. Any future potential growth on that investment will not form part of that person's estate for inheritance tax purposes. The person can demand repayment of the loan, in whole or in part, at any time.
The value of the Bond held within the trust can fall as well as rise.