Have any forum members had experience in removing an RAC policy from a discretionary trust. If it is actually possible . The trust was established in 1985. The member / settlor is still alive and hasn’t taken any benefits but with high charges applying to the policy he is keen to move it but not many places will accept the policy whilst held in trust.
Any thoughts would be welcome.
Clare Eve
LB Group
My recollection is that a retirement annuity contract could not itself be assigned, so a trust typically worked by dividing up the benefits - the lifetime and retirement benefits were expressed as being held absolutely for the original investor/policyholder and only any death benefit arising was subject to the discretionary trust.
If that’s the case, i see no reason why the original investor/policyholder could not choose to transfer the value of the plan to a new PP or other registered scheme.
(Needless to say, the investor should check first whether there are valuable guaranteed annuity rates which s/he would be giving up - these can be exceptionally valuable so do check first!).
What does the trust deed say?
Chris Jones
Rock Consultancy