Fixed Discounted Gift and Income Trust
(creating fixed trust interests)
The Discounted Gift and Income Trust (creating fixed trust interests) is established on an absolute trust basis. This allows your clients to take action to immediately reduce their potential inheritance tax (IHT) liability (subject to underwriting) while retaining the right to a fixed income for life. Because the value of this income right will normally have no value on death, the value of the settlor's estate is immediately reduced for IHT purposes, achieving a discounted gift.
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