Quilter 11 Policy number(s) Total number of policies Year of entitlement Policy fund 1-50 50 2025 A 51-150 100 2026 B 151-200 50 2030 C Note that not all policies need to be specified. Those that are not specified can never revert to the Settlor. Accessing the entitlements Mrs Stone becomes entitled to Policy Fund A (which contains policy numbers 1-50) on the anniversary date of the policy in the specified year of entitlement (i.e. 6 July 2025) as she is intending to visit Brazil at this time. The Policy Fund is held by the trustees who choose to surrender the policies and send the proceeds to Mrs Stone. Mrs Stone inherits some money in late 2025, and therefore would like to delay when she becomes entitled to Policy Fund B. She writes to the trustees and requests a deferral until 2033. Mrs Stone becomes entitled to Policy Fund C (which contains 50 policies 151-200) on the anniversary date of the policy in the specified year of entitlement (i.e. 6 July 2030) as she is intending to visit Australia at this time. After Mrs Stone’s death If Mrs Stone dies aged 85, having lived more than seven years since creating the trust and having spent all the proceeds from the Policy Funds to pay for her adventures, including Policy Fund B, the value of the trust will be outside her estate for inheritance tax (IHT) purposes. On Mrs Stone’s death, taking into account the value of the Policy Funds which have also been paid to Mrs Stone over the last 30 years, the value of the remaining investment in this scenario would be £550,000. So, compared to Mrs Stone doing no IHT planning, she has saved £550,000 x 40% = £220,000 (assuming the nil-rate band is used elsewhere). The trustees are now free to distribute the trust fund to the potential beneficiaries at their discretion.