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Lincoln launches new Discounted Gift Bond

11th September 2008 Print
Lincoln Financial Group announces the launch of its new Discounted Gift Bond. The bond is linked to a Discounted Gift Trust and offers an effective inheritance tax planning solution where settlors can move money out of their estate whilst still retaining an income.

The bond is available for those aged 18 to 89 years, although it is primarily suitable for those at retirement age, with an estate in excess of the nil rate tax band (£312,000 for 2008/9).

The Discounted Gift Bond enables an individual to take a fixed level of income until death whilst moving money out of their estate to reduce their potential inheritance tax bill. The overall minimum investment is £25,000 and the Discounted Gift Bond has a range of 21 funds, from which investors can invest in a maximum of 6 with unlimited free switches between funds.

The Trust fund is split into two parts; the Settlor's Fund, which provides the regular income until time of death providing there is adequate capital remaining in the Trust, and the Beneficiaries' Fund. The remainder of the Trust fund remains in the Beneficiaries fund and is distributed to the beneficiaries on death by the Trustees.

Ian Noble, Head of Sales at Lincoln Financial Group, said, "This is the latest addition to Lincoln's suite of products and complements the company's in and at retirement offering. This product helps investors reduce the amount of inheritance tax due on their estates and enables them to pass their wealth onto their selected beneficiaries, while still receiving fixed regular income payments.

"Discounted Gift Trusts offer an effective IHT planning vehicle and as such has become a competitive market. Our extensive experience in the retirement market ensures that we stand out in the market and as a result, we expect our Discounted Gift Bond will prove a popular choice with investors."