Royal London 360° launches new Discounted Gift Trust
Royal London 360° is adding a new trust to its range which reduces the value of an individual's estate for UK Inheritance Tax purposes (UK IHT).
Unlike the majority of Discounted Gift Trusts currently available, the Select Discounted Gift Trust (DGT), used in conjunction with the Royal London 360° Select investment bond, is Trust based rather than Product based which allows greater investment flexibility for trustees.
It also has the option to defer income, provides an income for the lifetime of the Settlor (or until such time as the trust fund is exhausted) and accepts further transfers after the trust has been created.
The trust's ‘Access Fund' is another key differentiator. This allows an investor to set aside a certain proportion of capital (held by the trustees) in order to meet future, unforeseen spending needs. If the Access Fund is found to be too large or no longer required, this capital can be gifted to the trust fund, increasing the trust value for the intended beneficiaries and further reducing the size of the Settlor's estate for UK IHT purposes.
The Select DGT can be established on either a bare or flexible beneficiary basis, and with single or joint Settlors.
Natalie Dutton, Head of Marketing at Royal London 360°, commented: "The Select Discounted Gift Trust has been designed for ease of use by financial advisers and investors alike, whilst at the same time introducing features not found on other schemes currently available.
"DGTs are tried and tested planning in the market place, and as such are a popular choice for advisers looking to assist their UK domiciled clients in reducing a potential UK IHT liability.
"Royal London 360° recognises that today's investors need some degree of flexibility in the availability of their finances, and so we expect this to be very popular, particularly because of the option to allocate capital to an Access Fund."