The Wealth Preservation Europe Account (WPEA) is based on Canada Life’s similar product in the Isle of Man, which was voted Best Trust/Estate Planning Product in International Adviser’s International Life Awards 2013.
Individuals gift money to the account which is then invested by trustees into an offshore bond created with up to 998 policies.
Canada Life states that the “unique selling point” is the ability for the trustees to decide when and how many policies will mature, or to select future anniversaries if they decide to defer the maturity dates.
This allows the trustees to make sure that policies only mature when the individual needs the payment and therefore do not inadvertently increase the individual’s inheritance tax liability.
There is no maximum number of funds to invest into, up to six lives can be insured, and the WPEA also allows for discretionary investments through an Irish provider.
Minimum investment is £50,000 with Canada Life facilitating the initial adviser charges before the products are set-up and ongoing adviser charges being paid quarterly, half yearly or yearly.
Mark Armstrong, managing director of CLIA said the product gives flexibility for those who want to reduce their inheritance tax liability and peace of mind to be able to supplement their income if needed.
“This is particularly important for people who may be about to retire and who want to see their money grow, especially those who want to use one or multiple discretionary investment managers,” he said.
Canada Life launched Canada Life International Assurance in May last year, to sit alongside its already established Isle of Man based business.