Zurich Financial Services has launched two new individual pensions trusts, the Pensions Discretionary (2 years) Trust and the Pensions Discretionary (80 years) Trust.

Zurich said that the new trusts are designed to provide advisers and their clients with greater control, flexibility, and peace of mind to ensure effective estate planning.

The Pensions Discretionary (2 year) Trust forces benefits to be paid within two years of death, resulting in no inheritance tax (IHT) liability.

Alternatively The Pension Discretionary (80 years) Trust should be considered when it may not be appropriate to pay out benefits within two years of the member’s death. Though this may incur an IHT liability, the lump sum can then be retained and invested inside the trust for up to 80 years and allows the spouse access to the benefits if required via an interest free loan.

Both trusts are available for new business customers and can be used in conjunction with the Zurich self-invested personal pension and protected rights transfer plan.

Dave Lowe, director of pensions management at Zurich, said: Individual pension trusts are an important retirement planning area for financial advisers and Zurich is pleased to support this expanding market with innovative solutions. Choice, control and flexibility are crucial factors for clients and by developing these new trusts we endeavor to make it easier to help consumers understand the complexities around trust planning.