Long-term Care Funding: Trust me, it's a gift

Introducing the discretionary discounted gift trust, DDGT. For high-net-worth families who wish protect their assets from inheritance tax, increasingly the structure of choice is the discretionary discounted gift trust. From the trust, the donor can withdraw five per cent per annum, with no income tax liability for up to 20 years. If the donor survives for at least seven years, then no inheritance tax applies to the trust nor the growth, but importantly those income withdrawals continue for life, however long that may be. But, unlike other conventional discretionary trusts, depending on age and health, you can gift very much more than £325,000 without triggering prohibitive entry tax charges. Of most relevance to wealthy families, with some clever planning it's possible to achieve this with property too.

Finally… after seven years it's possible to create yet another DDGT with exactly the same benefits - and the same again every seven years thereafter. The result is that you shelter substantial amounts from inheritance tax. But let's face it, more important to you is the increasing level of tax-efficient income you'll receive as you get older. A far more palatable alternative to pensions.

ArnoldAaron.co.uk

Whether you are part of a professional practice with clients requiring specialist inheritance tax advice or an individual wishing to consider estate planning strategies, contact Arnold Aaron on 020 8201 6574 www.arnoldaaron.co.uk