Balancing clients' needs

Discounted gift trusts (DGT) help clients to balance the need for access to regular withdrawals from an investment, while also making a gift for inheritance tax (IHT) purposes. These trusts, and the underlying methodology and underwriting options which support the discount valuation, have evolved over the years. The most recent change came in February 2009, when discounts increased as a result of HM Revenue & Customs (HMRC) reducing the interest rate assumption. This was the reverse of what happened in September 2007, when discounts for clients decreased due to increasing interest rates at ...