Aviva's Children's Savings Investment Trust
New product to benefit from Small Gift Exemption
Aviva is delighted to announce the launch of our new Children’s Savings Investment Trust product.
This product allows you and your customers to use the annual small gift exemption. The Small Gift Tax Exemption allows your clients to gift up to €3,000 tax-free in any year to their child, grandchild, or anyone else. This gift will not impact the recipient’s Group tax-free threshold for Capital Acquisition Tax purposes. A Bare Trust allows money to be paid by a Settlor(s) to a trust fund managed by Trustees on behalf of the Beneficiary (ies) of the trust.
There are many advantages to investing in Aviva’s Children’s Savings Investment Trust:
- The Beneficiary is the full and beneficial owner of the funds held within the trust.
- All premiums paid into the policy are paid to the child, who has beneficial entitlement and owns those premiums.
- By investing €3,000 each year (or €6,000 for a couple), the child will not incur a gift tax liability, nor will the relevant threshold for CAT purposes be impacted.
- The Trustees can still encash the policy while the child is under 18. However, the funds must be for the full benefit of the child. Standard exit tax rules apply to any surrenders or withdrawals.
While the Children’s Savings Investment Trust uses a Bare Trust in conjunction with Aviva’s Savings Plan and is appropriate for Beneficiaries under 18, we also have a simple solution where the Beneficiary is over 18.
Aviva Solution for Beneficiaries under 18
Aviva’s new Children’s Savings Investment Trust uses a Bare Trust with Aviva’s Savings Plan product. A Bare Trust is a type of trust that allows money to be paid by a Settlor(s) to a trust fund managed by Trustees on behalf of the Beneficiary (ies) of the trust. The Settlors and Trustees are often the Beneficiaries’ parents, grandparents, or other relatives.
The Small Gift Tax Exemption allows your clients to gift up to €3,000 tax-free in any one year to their child, grandchild, or anyone else. This gift will not impact the recipient’s Group tax-free threshold for Capital Acquisition Tax purposes. A Bare Trust allows money to be paid by a Settlor(s) to a trust fund managed by Trustees on behalf of the Beneficiary (ies) of the trust.
Aviva’s Solution for Beneficiaries over 18
Where the Beneficiary is over 18, they can set up a policy with Aviva using our Savings Plan product. The Beneficiary is the policy owner, and the Settlor(s) completes the direct debit mandate. In this way, the Settlor(s) pays the proceeds directly to the Beneficiary’s policy, making the annual gift.
The Savings Plan Product from Aviva – Key Features
- Flexibility: A range of charging and commission structures are available to suit your clients and your business model. Monthly contributions start from €100 for Savings Plan Option A and Option B policies keyed online. Annual Management Charges start from 0.9%.
- Value for Money: No early encashment charges, policy fees or fund switch charges.
- Aviva Online Service Centre: With Aviva Online Service Centre, your customers can see the value of their savings, the funds their savings are invested in and the amount invested in each fund. They can also:
- Use online tools like our Risk Profile and Portfolio Builder tools .
- View and download their policy documents.
Access to a range of strong performing funds: We offer a range of 30+ funds with choices across asset classes, fund managers and risk ratings. Your clients can opt for a simple, ready-made solution or build and manage their portfolio using our Aviva Select Range funds. We also offer a range of funds designated as Article 8 under SFDR across both fund ranges. Of course, you can mix and match between our ranges.
Richard Hales
Propositions Manager
Aviva Life & Pensions Ireland
NEW! Small Gift Tax Exemption Solutions
The Small Gift Tax Exemption allows your clients to gift up to €3,000 tax-free in any one year to their child, grandchild, or anyone else and this gift will not impact the recipient’s Group tax-free threshold for Capital Acquisition Tax purposes.
Remember that tax laws can change over time, so it is important to check revenue.ie for the latest information.
Warning: Past performance is not a reliable guide to future performance.
Warning: The value of your investment may go down as well as up.
Warning: If you invest in this product you may lose some or all of the money you invest.
Warning: These funds may be affected by changes in currency exchange rates.