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Family Pension Trust - FPT

Alltrust Family Pension Trust - FPT

The Family Pension Trust (FPT) is a specialised Self-Invested Personal Pension (SIPP) designed for families or small groups such as business partners. The FPT offers a flexible approach to retirement planning, allowing multiple members to pool their pension resources while maintaining individual control over their investments.

What is a Family Pension Trust?

A family pension trust is a type of trust that is specifically designed to hold and manage pension assets for the benefit of a family/small group of individuals linked through business. It is a legal arrangement that allows individuals to transfer their pension funds into a trust, which is then managed by trustees on behalf of the beneficiaries.

The primary purpose of a family pension trust is to provide a secure and tax-efficient way to pass on pension assets to future generations. By placing pension funds into a trust, the assets are protected and can be used to purchase benefits for each member.

How Does a Family Pension Trust (FPT) Work?

When an individual establishes a family pension trust, they typically transfer their pension assets, such as retirement accounts, into the trust. The trust is then managed by one or more trustees, who are responsible for investing and distributing the assets according to the terms of the trust agreement. The Trustees are usually the FPT members and Alltrust SIPP Limited (the trustee company). The member Trustees appoint a chairperson to receive communications about the pension, makes day-to-day decisions for the pension and is responsible for ensuring the other Trustees are kept fully informed.

The trust agreement outlines the rules and guidelines for how the pension assets should be managed and distributed. It specifies the beneficiaries of the trust, which can include the individual’s spouse, children, grandchildren, or other family members. The agreement also defines the conditions under which the beneficiaries can receive distributions from the trust, such as reaching a certain age or meeting specific financial needs.

Key Features

  • Flexibility in Investments: Members can choose from a wide range of investment options, tailoring their portfolios to meet specific financial goals.
  • Collective Investment Benefits: By pooling resources, members can benefit from collective investment opportunities and potentially lower costs.
  • Tax Efficiency: Contributions receive tax relief at the member’s marginal rate, and the fund usually grows free from income and capital gains taxes.
  • Customisable Retirement Benefits: Offers flexibility in how and when to draw retirement benefits, including tax-free lump sums and adjustable income streams.
  • Death Benefits: Provides options to pass on benefits to financial dependants and beneficiaries, ensuring family financial security.

Aims

The FPT aims to:

  • Ensure financial security for dependants through inheritance planning.
  • Facilitate tax-efficient retirement savings.

A broad range of investments can be facilitated by the following Designated Investment Managers / Fund Managers / Platforms:

  • Alltrust Platform
  • 7IM
  • AJ Bell Investcentre
  • Brooks Macdonald
  • Canaccord
  • Hubwise (and certain white labelled Hubwise partner firms)
  • Klienwort Hambros
  • LGT Vestra
  • Quilter
  • Rathbones
  • RBC Brewin Dolphin
  • Scottish Widows Platform
  • Stocktrade
  • Telford Mann
  • Transact

Requests for an alternative provider can be considered on a case-by-case basis by submitting your rationale to newbusiness@alltrust.co.uk

  • Offer flexible retirement income options and the possibility of annuity purchase.
  • Adapt to changing needs and circumstances both before and after retirement.

Committment

Participants in the FPT are not obligated to make regular contributions, offering flexibility to start or stop contributions as needed. As a long-term investment, benefits are typically accessible from age 55 (age 57 from 2028), subject to current legislation. Administrative fees apply and are usually deducted from the fund.

Our Services

FPT Key Features Please request additional documents using the email address in the “Get In Touch” section below.


SIPP Fees

As part of our contractual relationships with our banking providers, Alltrust may be paid an amount of interest in addition to the interest received on the account. The interest we receive will be dependent on the total balances that we hold with each bank.

Get In Touch

Our Team are Here to Assist You – We are highly knowledgeable and experienced in all aspects of our products and services.

01722 705705
fpt@alltrust.co.uk