Discounted Gift Trusts / DGT
Discussion
What are the realistic costs and charges of setting-up and running one?
Assumptions:
£300k available to invest
67% discount achievable
i.e. £100k placed into the retained fund (ie. generating £40k of immediate IHT relief)
£5k pa taken as monthly income for life. (5% of the retained fund - may need to cover whatever ongoing fees are payable)
What sort of underlying investments are available / realistic returns / would there be significant initial fees payable to the provider?
Discretionary or Bare Trust (assume available NRB, so no IHT to pay on entry)
Extra costs of a Corporate Trustee?
Presume that whatever ongoing advice fees to be agreed would be levied on the entire £300k?
Presume there might reasonably be an initial advice fee payable if this was a new client/new business but possibly different in a ‘replacement business’ scenario...
Assumptions:
£300k available to invest
67% discount achievable
i.e. £100k placed into the retained fund (ie. generating £40k of immediate IHT relief)
£5k pa taken as monthly income for life. (5% of the retained fund - may need to cover whatever ongoing fees are payable)
What sort of underlying investments are available / realistic returns / would there be significant initial fees payable to the provider?
Discretionary or Bare Trust (assume available NRB, so no IHT to pay on entry)
Extra costs of a Corporate Trustee?
Presume that whatever ongoing advice fees to be agreed would be levied on the entire £300k?
Presume there might reasonably be an initial advice fee payable if this was a new client/new business but possibly different in a ‘replacement business’ scenario...
Edited by Mogul on Saturday 25th September 11:42
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