We have a wide range of trusts for use with bond products, including bare and discretionary versions of gift trusts and loan trusts. Depending on their choice of trust and level of investment, clients could use these with no immediate IHT liabilities.
We give you a bit more detail about all of our trusts below, including what paperwork you need to complete to set them up. Our Adviser guide to our trust range tells you more about who they’re suitable for and how they can save IHT.
Click on each heading to find out more:
Discretionary trusts
Discounted Gift trust (DDGT)
| This trust aims to reduce the client’s potential IHT liability – immediately and in the future – while still giving them access to their money through regular payments. To set up this trust, the following documents need to be completed:
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Gift trust (DGT)
| This trust aims to reduce the amount of the client’s potential IHT liability by letting them make an IHT-efficient gift into trust for their chosen beneficiaries. To set up this trust, the following documents need to be completed: If the client is giving the trustees cash to buy an AEGON Scottish Equitable or AEGON Scottish Equitable International bond, then the bond application should be provided: For much more information on the DGT, see our Detailed guide. |
Loan trust (DLT)
| This trust aims to reduce the amount of the client’s potential IHT liability. The outstanding loan – which reduces as they take repayments and spend them – is part of the client’s IHT estate, but the investment growth falls outside it. The client can also use their yearly IHT exemption of £3,000 to write off parts of the loan as a gift to the trust, which means more IHT savings. To set up this trust, the following documents need to be completed:
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Bare trusts
Discounted Gift trust (BDGT)
| This trust aims to reduce the client’s potential IHT liability – immediately and in the future – while still giving them access to their money through regular payments from the trust fund. To set up this trust, the following documents need to be completed:
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Gift trust (BGT)
| This trust aims to reduce the amount of the client’s potential IHT liability by letting them make an IHT-efficient gift to trustees on behalf of their chosen beneficiaries. To set up this trust, the following documents need to be completed: If the client is giving the trustees cash to buy an AEGON Scottish Equitable or AEGON Scottish Equitable International bond, then the bond application should be provided: For much more information on the BGT, see our Detailed guide. |
Loan trust (BLT)
| This trust aims to reduce the amount of the client’s potential IHT liability. The outstanding loan – which reduces as they take payments and spend them – is part of the client’s IHT estate, but the investment growth falls outside it. The client can also use their yearly IHT exemption of £3,000 to write off parts of the loan as a gift to the trust, which means more IHT savings. To set up this trust, the following documents need to be completed:
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