Discounted Gift Trust

The underlying investment can be held in one of three jurisdictions at outset.

• Select Account DGT – UK-based
• Delta and Premiere Discounted Trust Accounts – Isle of Man-based
• Premiere Europe Discounted Trust Account - Ireland-based

• Select DGT offers a fettered range of UK insured life funds
• Delta Discounted Trust Account offers a fettered range of offshore insured life funds
• Premiere and Premiere Europe Discounted Trust Accounts offer true open architecture including access to 000s of funds, 50+ investment platforms, 150+ discretionary investment manager links and the Segregated Portfolio Service.

All four DGT solutions are available as life assurance bonds with the use of multiple lives assured being available.

The Premiere and Premiere Europe Discounted Trust Accounts are also available on a capital redemption basis, where specific lives assured are not required.

If the underlying bond is written on a life assurance basis and the settlor(s) are included as lives assured then the arrangement may be impacted by the gift with reservation rules so therefore we do not allow the settlor(s) to be included as lives assured.

For the Premiere Europe Account the Irish Revenue Commissioners have confirmed that discretionary fund management services are not chargeable to VAT under the Value Added Tax Consolidation Act 2010. This is provided that the assets being managed are classed as a pooled fund portfolio bond and not a highly personalised bond. 

For the Premiere Account, VAT is usually chargeable on discretionary fund management fees. The exact status of VAT depends on the service being provided and to who – you’ll need to make sure you’re satisfied with the final VAT position.  

You can choose to set up a Premiere or a Premiere Europe Discounted trust Account on either a life assurance or capital redemption basis.

Life assurance bond

With this type of bond, you can choose to insure the lives of up to six people. The death benefit is paid on the death of the last life assured and the bond is closed.

This basis includes an element of life cover so the bond is disregarded for long-term care assessment, unless deliberate deprivation rules apply.

Capital redemption bond

With this option there are no lives assured. Instead, the bond continues for a fixed term of 99 years, and will pay out a guaranteed maturity value at the end of the term (unless you choose to close it sooner).

This basis does not have any life cover so it is included in long-term care assessment.