The Family Pension Trust (FPT) is a specialised group 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.
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. 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 from potential creditors, lawsuits, and other financial risks that could otherwise deplete the funds.
When an individual establishes a family pension trust, they typically transfer their pension assets, such as retirement accounts or annuities, 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 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.
The FPT aims to:
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, subject to current legislation. Administrative fees apply and are usually deducted from the fund.
Our Team are Here to Assist You – We are highly knowledgeable and experienced in all aspects of our products and services.
02920 772986
fpt@alltrust.co.uk
For any PSG queries relating to the recent announcement please either call us on 03330 918618 or email the team at sippinfo@alltrust.co.uk