Frequently Asked Questions
How do I find out how much income I'm likely to receive from my Plan?
Every year, shortly after your birthday, we will send you a statement which details the current value of the holdings in your Plan and gives an up-to-date projection of the annual income you could get from your Plan. The statement shows the income projections if the holdings were to grow by certain percentages (5%, 7% and 9%) and also if life expectancy of Planholders is higher or lower than expected.
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How can I find out how the funds in my Plan are performing?
We produce monthly factsheets showing past performance on each of our funds which you can download here . If you have any queries about the funds in which your Plan is invested, you should speak to your financial adviser. Please note that past performance is not an indication of future performance.
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How can I change the funds in my Plan?
You can change the funds in your Plan through your financial adviser. You can switch funds up to 3 times a year. The first switch is free. Any subsequent switches are charged at £25 each by unit deduction.
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Can I change the age at which I start to receive income from my Plan?
Yes, you can change to a later Vesting Age up to 6-months before your chosen Vesting Age.
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Can I cancel my Plan?
You have 30 days from receiving your Plan documentation in which to cancel your Plan and receive a refund. You can do this by returning the cancellation notice included in your Welcome Pack.
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Can I surrender my Plan?
Yes, you can surrender your Plan after 2 years. However you cannot surrender once income payments have started. The surrender value is the original investment less the initial charge or current fund value minus any Birthday Units, whichever is lower.
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Can I increase the investment in my Plan?
You can't increase the investment in an existing Plan. However you are able to purchase additional Plans with different investment amounts up to a maximum investment total of £1,000,000.
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What are Birthday Units?
Birthday Units are the additional fund units allocated to you on your birthday. Birthday Units arise from the redistribution of the investments held by Planholders who have not survived or who have surrendered their Plans during the course of the year.
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How are Birthday Units allocated to me?
Birthday Units are allocated to you based on your age, gender and size of unit holdings according to an actuarial calculation.
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How will the annual income be paid to me?
Before the birthday on which you've chosen to start taking income, we will send you a letter asking you to confirm your bank details. The annual income will then be paid directly into your bank account shortly after your birthday.
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How can I ensure that the return of my investment is paid to my beneficiaries free of inheritance tax (IHT) if I die?
You can place the death benefit - i.e. the return of your original investment minus any income taken - in a Bare Trust to ensure it's gifted to your beneficiary or beneficiaries. You can speak to your financial adviser about how to do this - you simply need to fill out the relevant Trust Form.
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What happens if I change any of my details during the life of the Plan?
If you change any of your personal details such as name, address, bank account details or if you change your financial adviser, please let us know in writing and we'll update the details we have for you. Please send all letters to:
Life Trust
PO Box 1037
Cheltenham
GL50 9HX
What are the charges on my Plan?
There is an initial charge of up to 5% of the investment made into your Plan. Life Trust uses this deduction to pay for administration and distribution expenses (including any commission to your financial adviser). There is an annual management charge and related expenses which will vary depending on the funds you choose to invest in. These are deducted on a daily basis from each fund through an adjustment in the unit price. They include the fees for the fund manager, the custodian bank and third party administrators. The annual management charge may vary over time but can only be raised to cover increases in administration costs or changes required by legislation. There is also a small charge for life cover, which ensures that the amount of your original investment will be repaid. This charge will increase with age and will be reviewed annually by Life Trust.
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