Standard Life has launched its new Flexible Reversionary Plan (FRP) as it looks to improve its existing trust range and bolster its range of inheritance tax (IHT) planning solutions.

The FRP aims to provide clients with estate planning flexibility while allowing variable payments back to them if needed.

Its new trust is available on the Standard Life International Bond, which the firm said underlined its growth ambitions in the offshore bond market.

Through the FRP, clients will be able to gift a Standard Life International Bond into trust while keeping the option to take regular, adjustable payments (reversions).

These are noted in the trust deed and become available on bond anniversary dates, depending on when clients believe they will need funds, although reversions can be defeated by the trustees and paid to beneficiaries or deferred if clients do not need them at the reversion date.

Standard Life said that flexible access combined with control over when beneficiaries are entitled to funds can offer multiple benefits for estate planning, as it allows for structured wealth transfer while managing the value of a client’s estate for IHT purposes.

With pensions coming into scope of IHT from April 2027, the provider said these capabilities were becoming increasingly important.

Investment growth in the FRP is outside of the client’s estate and the value of the Standard Life International Bond falls outside of the estate entirely after seven years.

“As changes to the wealth planning landscape throw previously solid estate plans into question, advisers are looking to ensure clients’ wealth is managed in the most tax-efficient way, and our trusts are designed to support them as they come to terms with this,” said Standard Life head of intermediary advised & private clients distribution, Warren Bright.

“The FRP will help clients manage assets and address IHT issues in a flexible and tax-efficient way.

“Our research suggests advisers are re-evaluating the role that investing offshore may have in client portfolios moving forward, and offering the FRP exclusively with the Standard Life International Bond demonstrates our ambitions in this market as we continue to grow the offshore bond business and maintain our top-three position.”

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