DGTs are the popular choice for IHT planning

Over the past months, I have been looking at the tax treatment of the main insurance-based inheritance tax (IHT) planning trusts in light of the new IHT regime introduced by the Finance Act 2006. This month's article considers the position of discounted gift trusts (DGTs). DGTs have probably been the most popular IHT planning vehicle in the marketplace and I do not see this changing under the new regime. DGTs work by placing an initial gift into a trust of which the settlor is not a beneficiary and making the gift subject to a carve out of a series of annual or more regular payments reser...