Self Administered Retirement Trusts (SART)
Self Administered Retirement Trusts (SART)
A Self-Administered Trust is a variation of the conventional occupational pension scheme. Each Trust is separately approved by the Revenue as a tax-exempt scheme. Unlike traditional pensions from an insurance company however, there is complete control and flexibility over the selection of investments. For example it is possible to invest directly in all types of property or equities. All gains and profits arising from these investments within the fund are tax-free.
The Trusts are suitable for proprietary directors or indeed any employee with the ability to invest, for example €50,000 per annum. There must be an employer/employee relationship so it is not suitable for sole traders or partners.
Flexibility is a key component of Self-Directed Trusts both in term of contributions and investment options. In terms of wealth management and exit planning the ability to transfer business profits to a personal trust and ultimately onward to the next generation in a tax efficient manner is a key factor.