Offshore Bond Segment Assignment (Probate Trust) into new Discretionary Trust

Hi All,
Looking for some clarity as been asked to look into the above but have never came across this before or done this before

Clients have an offshore bond held under probate trust worth £2.2M.
Inital Investment - 1.65M (set up June 15)
5% allowance - £82K
Cumulative allowance - £424K
Segments - 828

They are looking for 650K to be "assigned" into a Discretionary Trust.

1) Am i right in thinking this will not be a chargeable event as it is not being assigned for money's worth?
2) Can they still assign 650K (ie 238 segments) if their cumulative allowance is 424K?
3) I have calculated gain per segment as c. £726, 5% allowance per segment c. £100, surrender value per segment c. £2.7K
4) Will the new Discretionary Trust then inherit these 238 segments with a 5% allowance of c. £100?

I am sure there will be other questions as I start to work through this!

Any help you can give would be much appreciated!




Sign In or Register to comment.