The Goodwills Pilot (Spousal Bypass) Trust
Not all trusts are the same.
You can call us for more information based on your specific circumstances on 01666 744002
What is a Pilot Trust?
A Pilot Trust, also known as a Spousal Bypass Trust or a £10 Trust is a lifetime trust set up with a nominal amount (typically £10) ready to accept a death benefit payment from a Death In Service policy, or a lump sum from a pension plan.
What does a Pilot Trust do?
If the pension trustees allow the Pilot Trust to be the beneficiary of the pension payment rather than the spouse or children, then it can accept the payment, protect the payment and potentially save a lot in IHT payments on the death of the spouse or the children.
How do beneficiaries get their inheritance?
Trustees can distribute or loan assets or provide income to the beneficiaries in accordance with your letter of wishes.
Why would the beneficiaries get a loan?
Loaning assets can help with IHT planning and keeping the assets in the family.
How long can a Pilot Trust last for?
The trust can run for 125 years. It is a great tool for passing assets through generations.
What about beneficiaries yet to be born?
The Asset Preservation Trust allows for different classes of beneficiary. The letter of wishes can help trustees decide how additional beneficiaries can be included.
Utilise our expertise!
Don't worry if it all seems quite complicated. Our role is to hold your hand every step of the way and answer all the questions you might have. Goodwills Wilts and Glos can provide a home visit service within many parts of Wiltshire and Gloucestershire or you can visit a senior client consultant in their offices in Malmesbury. Please contact us for an initial consultation or should you have any questions.