Standard Life has welcomed a decision from the Special Commissioner to execute a discount on a Discounted Gift Trust (DGP) set up by a woman who died five months after making a gift.
Julie Hutchison, estate planning specialist at Standard Life, describes the verdict as a “welcome vote of confidence in the general IHT principles behind DGPs”. The decision related to the value of the lifetime gift made by a Mrs Bower after she set up a DGP with AXA in 2002. She died five months after making the gift to the trust. A key issue was the age of the settlor at the point she made the gift to the trust. HM Revenue & Customs (HMRC) contended someone aged 90 or over would receive little or no discount as anybody of that age would be uninsurable. But the executors of the late Mrs...
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