Quilter 9 Where is my money invested? Your cash sum is invested in a Collective Investment Bond (CIB). This provides a flexible method of investing your money and offers the potential for growth, over the medium to long term. The bond is designed to allow your investment to grow whilst you take regular withdrawals. Our bond offers a wide choice of investment options (funds), many linked to the performance of stock markets, enabling your trustees to choose funds to meet the investment needs of the trust. Because of the way the bond is structured, it also offers the opportunity to take advantage of certain tax benefits, depending on your personal circumstances and requirements. Please be aware that the trust restricts some of the flexibility the bond offers in order that the discounted gift trust continues to be effective for IHT planning. This generally relates to the level of access you can have to the investment and your control over it. For example: You will only be entitled to the amount of withdrawals which you specify at outset and you cannot change the level of your withdrawals in the future should your personal circumstances change. You will not be able to make additional investments into the bond, although you can set up a new bond subject to a new trust if required. Risk warning If the bond comes to an end during the settlor’s lifetime then the withdrawals will stop and the settlor will have no further right to receive withdrawals. This will also happen if all the individuals appointed as ‘lives assured’ die before the settlor. We therefore recommend that on these bonds, several lives assured are chosen to minimise this possibility. Although we have made every effort to ensure the discount provided is accurate, there is a chance that the value of your estate may not be reduced by the amount of ‘discount’ we calculate. At worst this could mean that you only receive a nominal discount. This could happen if HM Revenue & Customs – the department of the UK Government that deals with inheritance tax – interprets the existing legislation differently or they change their practices. Life assurance/lives assured The Collective Investment Bond is set up as a life assurance bond so it can provide you with tax-planning benefits. This type of bond has one or more ‘lives assured’, which means the bond will come to an end when the person who is assured dies. You have a choice of having multiple lives assured (up to a maximum of 10) to ensure the continuity of your bond. Where there is more than one life assured, the bond will end when the last person whose life is assured dies. For discounted gift trusts to be effective for IHT planning, the settlor and their spouse or civil partner must not be lives assured. The beneficiaries, for example children/grandchildren, may be appropriate as lives assured in order to ensure that the bond continues beyond your death.