The managing director of Canada Life International Assurance said the product would be particularly suitable for clients on the cusp of retirement and those who wish to use at least one discretionary investment manager.
The Wealth Preservation Europe Account enables clients to place money in a trust arrangement to limit inheritance tax liabilities. Funds can then be invested in an offshore bond along with yearly maturing policies. The product allows trustees to choose when and how many policies will mature to suit clients and ensure they do not accidentally trigger inheritance tax liabilities.
Mr Armstrong said: “The Wealth Preservation Europe Account offers great flexibility for people who want to reduce their IHT liability and also want peace of mind that they can still receive some money to supplement their income if needed.
“Being able to protect one’s wealth while keeping the option to access some of the cash offers people the best of both worlds and holding it offshore offers obvious tax benefits.”
The commission-based product can be taken out for up to six individuals and the minimum investment is £50,000.