Tax planning Flashcards by Vicky Bullivant

Q

What is a loan trust? (3)

A

Placing future growth on assets outside the estate without losing access to the original capital
interest free loan is made to the trust by the settlor
as is is a loan and not a gift then there is no transfer of value for IHT

How well did you know this?

1

Not at all

2

3

4

5

Perfectly

Q

What is a discounted gift trust?

A

A way to immediately reduce the value of the estate
GIft of capital under trust to beneficiaries whilst retaining the right for the settlor to receive a fixed income by way of capital replacements for life
ADD IN the rest

How well did you know this?

1

Not at all

2

3

4

5

Perfectly