Tax planning Flashcards Preview

AF1 > Tax planning > Flashcards

Flashcards in Tax planning Deck (2)
Loading flashcards...
1

What is a loan trust? (3)

*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

2

What is a discounted gift trust?

*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