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  • Discretionary Gift Trust Aviva

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Aviva discretionary gift trust (protection) (for use by single or joint settlors) Guide to completing the Deed: To help make it easier to complete this Deed, look out for the instruction notes. These.

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A discretionary trust gives trustees the power to decide how much beneficiaries get from a trust and when they get it. All capital and income is distributed completely at their discretion. This means there's more flexibility and assets can be protected if circumstances change for any reason.

In the first 10 years the exit charge rate will be 0% if the initial value of the trust fund is less than the nil-rate band at exit. Note however that chargeable transfers made by the settlor in the 7 years prior to set up will reduce the nil-rate band.

The drawbacks of discretionary trusts Because trustees of a discretionary trust can choose which beneficiaries receive the trust assets, it is possible for them to decide that one or more beneficiaries should receive nothing.

A discounted gift trust allows the settlor (or settlors) to make an inheritance tax effective gift whilst retaining a right to fixed regular payments for the remainder of their lifetime. The value of the settlor's gift for IHT will be discounted by the estimated value of these future retained payments.

Disadvantages. Discounted Gift Trusts can be relatively inflexible. If the Settlor decides not to take the income, usually of 5% per annum, payments can cease but this will have taxation consequences since it will be regarded as a further gift into trust.

It involves the person making a gift of an amount reflecting the value of their equity in the assets to be protected to a lower risk entity that they also control (typically a discretionary trust). The gift and subsequent loan are often made using promissory notes in the absence of cash being readily available.

The Discretionary Gift Trust (Investment) is a trust that allows you to make an inheritance tax (IHT) effective gift of cash, with the intention of investing into investment bonds and/or collective investments. You can also control who will benefit from the trust fund.

Key takeaways. The settlor may waive their rights to income from a discounted gift trust (DGT) either permanently, for a fixed period, or indefinitely. Waiver of DGT income is treated as a gift for inheritance tax (IHT). The value of the waiver may need to be calculated by an actuary.

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© Copyright 1997-2025
airSlate Legal Forms, Inc.
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Form Packages
Adoption
Bankruptcy
Contractors
Divorce
Home Sales
Employment
Identity Theft
Incorporation
Landlord Tenant
Living Trust
Name Change
Personal Planning
Small Business
Wills & Estates
Packages A-Z
Form Categories
Affidavits
Bankruptcy
Bill of Sale
Corporate - LLC
Divorce
Employment
Identity Theft
Internet Technology
Landlord Tenant
Living Wills
Name Change
Power of Attorney
Real Estate
Small Estates
Wills
All Forms
Forms A-Z
Form Library
Customer Service
Terms of Service
DMCA Policy
About Us
Blog
Affiliates
Contact Us
Privacy Notice
Delete My Account
Site Map
All Forms
Search all Forms
Industries
Forms in Spanish
Localized Forms
Legal Guides
Real Estate Handbook
All Guides
Prepared for You
Notarize
Incorporation services
Our Customers
For Consumers
For Small Business
For Attorneys
Our Sites
US Legal Forms
USLegal
FormsPass
pdfFiller
signNow
airSlate workflows
DocHub
Instapage
Social Media
Call us now toll free:
1-877-389-0141
As seen in:
  • USA Today logo picture
  • CBC News logo picture
  • LA Times logo picture
  • The Washington Post logo picture
  • AP logo picture
  • Forbes logo picture
© Copyright 1997-2025
airSlate Legal Forms, Inc.
3720 Flowood Dr, Flowood, Mississippi 39232