Penguin Pension Trust

 

 

The Penguin Pension Trust is a purpose designed framework to collect the value of a pension fund, or Death-in-Service Benefits on the death of an individual.

Pension funds generally pay out on your death to your next of kin with no Inheritance Tax (40%) to be paid.

Problem – Once it has paid out to someone, for example the surviving spouse, it becomes part of their estate and is now vulnerable to Inheritance Tax, if applicable, on their demise and could be part of a future divorce settlement and not end up with your children/loved ones.

The benefits of a Penguin Pension Trust are:-

  • Provides a framework for next generation tax benefits – 40% tax saving on death of the surviving spouse
  • Allows the benefits to remain in the trust for someone to control, rather than being paid out to irresponsible or immature family members
  • You can control how your spouse, or the children, actually receive the funds – regular income, certain trigger points for cash advancements such as education success or home purchase
  • Reduces the impact of assets from social impacts and third party claims on your children – such as a divorcing spouse or creditor
  • The value of the benefits can be loaned to the survivor and repaid back into the trust on their death
  • Following the death of the survivor, the children can also then benefit via a loan from the trust