Quilter 5 How the Lifestyle Trust works Invest in a single premium bond. To set up the trust you first invest the amount you plan to place into trust in a Collective Investment Bond (CIB) which is a single premium life assurance bond from Quilter. The bond is a way to hold your wealth in order to achieve potential long-term investment growth. To ensure the trust remains effective for inheritance tax purposes, neither you, the Settlor, nor your spouse or civil partner should be included as lives assured. 1 Specify your entitlement schedule. At the same time as you transfer the bond to the trust (step 2), you specify a schedule of dates when you want to receive entitlements from the trust fund. Although you can’t alter the size of these, the Lifestyle Trust gives you the flexibility to defer accessing them if you decide that you don’t need an entitlement on a scheduled date. (See ‘Accessing your entitlements’ on page 6). 3 Transfer the bond to the trust. The value of the bond becomes the ‘trust fund’ and the appointed trustee(s) takes full responsibility for managing and distributing it to the potential beneficiaries. You can be a trustee, but we recommend at least one additional trustee is appointed. 2 Consider writing a letter of wishes. You may decide to write a ‘letter of wishes’ to the trustees to give them an indication of your intentions and wishes for the way the trust fund is to be used. Although it is not legally binding, its purpose is to give the trustees guidance that you would like them to take into account when they make future trustee decisions. 4