Discounting the discount: Discounted gift trusts explained

Trusts help planners reduce or eliminate their clients' IHT liabilites

clock • 4 min read

Barrie Dawson explores discounted gift trusts in his latest article for Professional Adviser...

"Off-the-shelf" trusts from UK life offices (and their overseas branches) provide financial planners with trust solutions that might help reduce or eliminate their clients' inheritance tax (IHT) liability. The big four are the gift trust, loan trust, discounted gift trust (DGT) and flexible reversionary trust (FRT). Other than the same-day additions rules introduced by the Finance (No.2) Act 2015 in IHTA84/S62A, the last time the government made significant changes that impacted the above four types of trust was on 22 March 2006. Of course, the introduction of the Trust Registration S...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Tax planning

Partner Insight: Preserving ISA benefits through post-mortem tax planning

Partner Insight: Preserving ISA benefits through post-mortem tax planning

Quilter Cheviot
clock 10 June 2025 • 1 min read
IHT:  All the options for reducing clients' taxable estates

IHT: All the options for reducing clients' taxable estates

'Clients can make gifts to trusts to reduce the taxable estate'

Julia Peake
clock 09 June 2025 • 5 min read
Autumn Budget changes making advisers consider trusts for IHT planning

Autumn Budget changes making advisers consider trusts for IHT planning

Uptick in client concern about intergenerational planning

Isabel Baxter
clock 05 June 2025 • 2 min read