Discounted Gift Trust

Reduce inheritance tax and enjoy a fixed, regular payments.

The discounted gift trust (DGT) could be ideal for those looking for Inheritance Tax (IHT) planning and fixed, regular payments. Provided you live for at least seven years after the creation of the trust, the value of the gift moves out of your IHT estate. Any growth on the investment is outside of your estate from day one.

How it works

Is the Discounted Gift Trust right for you?

Get a regular, tax-efficient income for life
Potential immediate inheritance tax saving
Investment growth is outside of your estate

What are the risks?

The value of your investment can go down as well as up and you may get back less than you invest. Tax rules depend on the type of investment and individual circumstances and may change.

This trust could be right for you if:

  • You want to receive fixed, regular, tax-efficient payments

  • You want a potential immediate inheritance tax saving

  • You don’t want your beneficiaries to access the money while you’re alive

This trust might not be right for you if:

  • You want to make flexible, ad-hoc withdrawals

  • You want the beneficiaries to have access to the investment while you’re alive

  • You want to cash-in the bond while you’re alive

Discounted Gift Trust Case Study

Our case study illustrates the steps clients need to consider and how our Discounted Gift Trust can help.


Products that can be placed in this trust

You’ll need one of the following investment bonds to place into our Discounted Gift Trust.

Frequently asked questions

Customer support