Transact has unveiled the new Flexible Reversionary Trust (FRT) which it says will help advisers prepare for the April 2027 IHT changes when unused pension funds will be subject to IHT.
The move by the Treasury will potentially expose unused pensions to a 40% Inheritance Tax charge.
The new FRT is available on the Transact platform and expand's the firm's range of trusts, it says.
The firm adds that the trust launch will also strengthen its onshore and offshore bond proposition as advisers prepare for the planned IHT changes.
The new trust has been developed in response to adviser demand for products that help families plan for intergenerational wealth transfers, Transact says.
With reliance on pensions as an IHT‑efficient vehicle set to diminish, Transact says it has seen advisers accelerate their use of bonds and trust‑based strategies for intergenerational planning.
The new FRT can be used in conjunction with Transact's onshore and offshore bond wrappers and is designed to support clients who wish to consider gifting wealth from their estate while maintaining flexibility.
The structure allows a lump‑sum gift into a discretionary trust with the option of pre‑scheduled capital payments back to the donor. Any growth on the investment is outside the estate, while the original gift can fall outside the estate after seven years.
The FRT launch sits alongside wider enhancements to the platform, including online set‑up for bonds and trusts, improved chargeable gains support and ongoing investment in digital workflows.
Andrew Cullen‑Jones, chief development officer at Transact, said: “The changes due in April 2027 that make pension wealth subject to IHT represent the biggest change to Financial Planning in over a decade.
"Advisers are reassessing long-established estate planning strategies and looking more closely at alternative structures for passing wealth between generations. We've seen a marked increase in interest in bonds and trusts over the past year as advisers prepare clients for these changes."