Can a SSAS be Used as a Family Wealth Trust?
Yes. This is arguably one of the key benefits of having SSAS, one of the most tax efficient pension trusts available in the UK today..
An Example of a Family Wealth Trust
A simple example is a Limited Company, where the husband and wife are both Directors, and have built up a store of wealth inside their SSAS from investments to commercial property and anything else they have accumulated within their SSAS.
The assets within the SSAS can build to a substantial amount and they can add any children to the SSAS when they attain the age of 18 or at any time after that. With a husband, wife and let's say two children, you’ve created a family wealth trust.
Cascading the Value of Assets Down to Beneficiaries
If you’re holding things like commercial property inside your SSAS it is very easy, on the death of one of the senior Members, to cascade the value of that asset down to your beneficiaries, i.e. your children.
Tax Efficient Benefits
And because SSAS is super tax efficient, you pay no income tax on the rent or profits you are making on the investments made by the SSAS. There is no Inheritance Tax nor any Capital Gains Tax to pay when the value passes down to your children.
