Private Wealth Review

from Christian Ward

Discounted Gift and Loan Trusts: What your financial adviser doesn’t tell you

Discounted gift trusts (DGTs) and loan trusts are often recommended by financial advisers to those who wish to save inheritance tax but don’t want to relinquish all access to their capital. Unfortunately, too many financial advisers treat these solutions as a panacea for all client situations. Conversely, many legal and tax professionals overlook these structures as they cannot implement them because they do not have the necessary regulatory permissions to advise upon solutions that have an inherent investment element. Worse of all is that most financial advisers rely on the life assurance company providing the various schemes for technical information – this creates a clear conflict of interest. This combination of factors places the private client in a real dilemma. My free eBook dispels some of the myths that surround DGTs and loan trusts and I also outline and evaluate alternative planning solutions that are often unknown to consumers and most financial advisers.

My eBook examines the key factors that UK resident investors should consider when evaluating whether a discounted gift trust or loan trust is the most suitable option for their situation. These are some of the issues covered in the eBook:

  • How much inheritance tax does a loan trust actually save?
  • The paradox of discounted gift trusts.
  • Do you really need a discount?
  • Is a life assurance bond the best option?
  • Not all discounted gift trusts are created equal.
  • Where are the customers’ yachts?
  • Is a flexible reversionary trust a better option?
  • What if your life expectancy is below seven years?
  • What is HMRC’s approach to these structures?

The eBook is therefore a must read guide for any investor contemplating an investment into a discounted gift or loan trust. Find out what your financial adviser probably doesn’t even know!

I first published this eBook in 2009 and after over a thousand downloads is now in its fifth edition.

You can download the eBook by clicking the following link Discounted Gift and Loan Trusts What your financial adviser doesn’t tell you.

Tagged as: , , ,