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wealth protection

The responsibility and opportunity that comes with your wealth demands careful specialist advice. So place your future in experienced hands. Our specialist teams advise on a range of issues including estate and succession planning, retirement planning and protection.

Having the right cover in place could shield you, your family and your business from unwelcome anxiety and financial pressures in the event of ill health, death or being unable to work. Our protection specialists, working alongside our carefully selected panel of insurers, can help create a package tailored to your needs. Some of the key protection areas to consider are:

  • Coping with the death of a loved one
  • Financial assistance upon the diagnosis of a critical illness, such as cancer or stroke
  • Income replacement if you are unable to work
  • Whole of life policies for estate planning purposes
  • Financial assistance after the death of a key business colleague or company director
  • Ensuring that loans and mortgages can be repaid in the event of death

Whether you are a non-UK domiciled individual living in the UK, considering relocating to or from the UK or you are simply looking to structure your affairs more effectively, we have the expertise to add value to these discussions before you take action.

Our team work will work closely with your professional advisers, Private Banker and Wealth Manager to navigate the complexities of structuring your affairs for the long term.

In our experience many individuals do not consider establishing a trust as part of their wealth planning even though it can be an extremely effective tool. This tends to be for one of two reasons: some individuals feel that settling a trust will be too complex when in reality it can be a relatively straightforward process. Alternatively, many have heard that trusts are only appropriate for passing on extreme wealth but in fact many individuals establish trusts at sums at or below the Inheritance Tax (IHT) threshold (currently £325,000).

There are many reasons why a trust may be suitable. This could be to protect assets, to provide privacy or to ensure the smooth transition of assets to beneficiaries on death and avoid lengthy probate proceedings. Whatever the reason, our trust experts can advise whether a trust is appropriate to meet these objectives and then work closely with your Private Banker or Wealth Manager to ensure that you achieve your aims.

 

ADVANTAGES OF USING COUTTS

Coutts has over 75 years' experience of establishing and managing trusts that meet the needs of wealthy individuals and families. Continuity in a trust's management is important and so Coutts is often appointed as Trustee. 

 

SERVICES WE PROVIDE

  • Establishing the trust including preparing the deed
  • Regular meetings with co-trustees to deal with administrative matters
  • Making distributions to beneficiaries
  • Monitoring investment reports
  • Dealing with all administration, accounting and tax reporting

Typical situations where a trust may be appropriate

  • Helping the next generation

    Trusts are a useful tool in passing wealth on to the next generation. Parents could set aside sums up to their combined nil rate bands of £650,000 to provide funds for their children which could be used, for example, to assist in the purchase of their first property. By transferring this sum into a trust, the parents can start the 'seven year clock' for IHT purposes.

    Likewise, grandparents may want to provide for their grandchildren's education by establishing a trust which could release monies to meet these future costs. Such trusts can provide directly for grandchildren whilst starting the 'seven year clock'. They also ensure that assets are passed to grandchildren without becoming chargeable to IHT in their children's estate first.

  • Charitable intentions

    For individuals who have a substantial sum that they wish to invest for charitable and philanthropic purposes a charitable trust can be a highly effective and very rewarding means of providing long-term support for the causes that matter most to them. A charitable trust can continue in perpetuity and evolve over time with the donor and, or, family members becoming trustees and being involved in grant-making decisions. Coutts Trust team works closely with our dedicated Philanthropy team to ensure that individuals' charitable objectives are understood and achieved.

  • Protecting young and vulnerable beneficiaries

    A trust can be used to ring-fence sums for individuals who may not be in a position to receive the assets outright perhaps because of their age or personal situation.

  • Flexibility

    Trusts can also be used in some insurance based arrangements to provide potential IHT benefits and flexibility for individuals who wish to settle money on trust but retain some access to part of the funds.

The value of investments and the income from them can fall as well as rise, and you may not recover the amount of your original investment.

Whatever your wealth level, it makes good financial sense to use all of your tax-free allowances, and Individual Savings Accounts (ISAs) are one of the most popular and straightforward.

There are several different types of ISA, but the simplest to use are the cash ISA and the stocks and shares ISA. Each tax year you can subscribe an amount up to the annual ISA allowance and it will be free of UK tax on interest, dividends and capital gains. Our specialists can talk through your options with you.

Our online investing service, Coutts Invest, is one example of a straightforward way to use your annual ISA allowance. Just log in to your Coutts Online account and you can choose from a range of five multi-asset funds that offer lower to higher risk profiles reflecting the Coutts house view on asset classes and markets.

 

 

Important information

  • You can only subscribe to one stocks and shares ISA and one cash ISA in each tax year.
  • Cash ISA available only for those aged 16 years or over and resident in the UK for tax purposes. Stocks and shares ISA available only for those aged 18 years or over and resident in the UK for tax purposes.
  • Coutts Invest is only available for users of Coutts Online aged 18 years or over and resident in the UK for tax purposes.
  • Tax-free interest means that interest payable is exempt from UK income tax.
  • The above commentary is based on our understanding of current tax law, which is subject to change in the future. The availability and value of any tax reliefs will depend on your individual circumstances and you should obtain tax advice before making any decisions.

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