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Welcome to RL360's

dedicated financial adviser website

For financial advisers only

Not to be distributed to, or relied on by, retail clients

Gift Trust

The Gift Trust represents the simplest form of UK Inheritance Tax (IHT) planning. The settlor passes property/investment plan by way of a gift to the trustees for the benefit of chosen beneficiaries. Individuals considering a Gift Trust should only do so if they do not require access to the investment in the future.

Some individuals may not want to make a substantial gift directly to their children. They may want the children to inherit the money at a later age when they are more financially mature.

General features of the trust

  • the trust can be established with single or joint settlors
  • the settlor is not automatically included as a trustee
  • the settlor cannot be beneficiary
  • the trust can be used for existing or new plans
  • the trust can accept increments to the trust fund
  • the trust will avoid Isle of Man Probate assuming there is a surviving trustee alive at the time of the death of the last life assured on the plan

The Gift Trust may be suitable for individuals who

  • are UK domiciled or deemed UK domiciled for UK IHT purposes
  • can afford to gift away capital with no requirement for future access

Important notes

Please note that every care has been taken to ensure that the information provided is correct and in accordance with our current understanding of the law and practice at Her Majesty's Revenue and Customs (HMRC)as at June 2019. You should note however, that we cannot take on the role of an individual taxation adviser and independent confirmation should be obtained before acting or refraining from acting upon the information given. The law and HMRC practice are subject to change. Legislation varies from country to country and the plan owner's country of residence may impact on any of the above.

Gift Trust literature