IHTM20551 - Split or Retained Interest Trusts: Introduction

Split, or retained interest, trusts are products offered by insurance companies which enable the rights under a policy or bond issued by the insurance company to be split between the settlor and the settlor’s chosen beneficiaries. They come in two general forms. Single lump sum investments (IHTM20552) where the settlor retains a portion of the fund, and regular premium policies (IHTM20554) where the alternative benefits payable under the policy are held for different beneficiaries.