The Discounted Gift Scheme allows a person (the donor/settlor) to reduce the potential inheritance tax (IHT) liability on their estate by making a gift into trust, whilst at the same time still retaining the right to receive fixed regular payments at specified intervals for the rest of their life or until the bond is exhausted. The initial gift a person makes may be discounted for IHT purposes.
The value of the bond held within the trust can fall as well as rise, and your clients and/or their chosen beneficiaries may get back less than your clients invest.
To find out more please talk to your usual Legal & General representative or email our technical team
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