What is a Discounted Gift Trust?
A Discounted Gift Trust is an arrangement which allows an investor to immediately reduce the value of their estate for Inheritance Tax purposes, whilst also providing a tax efficient source of personal income.
The benefits of a Discounted Gift Trust are:
- A means of immediately reducing Inheritance Tax (depending on health)
- If you survive 7 years there will be no IHT to pay
- The ability to receive a regular, tax free ‘income’
- All capital growth passes to beneficiaries after your death, free from IHT.
- High degree of control over who will finally benefit
- No personal income tax or capital gains tax to pay.
- No requirement for Tax Returns
