Clerical Med launches new DGIP trust

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Clerical Medical has unveiled a new Discounted Gift and Income Plan (DGIP) which enables clients to nominate specific beneficiaries while retaining rights to income.

The plan is suited to clients who want to reduce their potential inheritance tax liability but want to avoid the cost and reporting requirements associated with discretionary trust arrangements. Unlike the Discretionary DGI, the new plan, which launches on September 17, avoids the immediate IHT of 20% for investments over £300,000. In this way the new plan is similar to a bare trust although a bare trust has no retained income rights. The plan would be more likely to appeal to people who believe their named beneficiaries are unlikely to change in the future, whereas those who are unsu...

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