<p>Under the terms of the trust, if the client dies within the first seven years of setting up the trust, the amount added back into their estate for inheritance tax (IHT) purposes may be less than the original check they wrote – hence the name 'discount,' which can reduce IHT. The value of the discount depends on the age, health and sex of the customer, as well as the level of withdrawals selected. <br /><br />The beneficiaries are fixed at outset and cannot be changed by the trustees or added to. This trust is therefore most suitable to those who are certain of their wishes.<br /><br />It is nearly a year since Standard Life had to withdraw its trust range following uncertainty around the tax status of gifts to trust immediately after the March 2006 budget, commented Julie Hutchison, Standard Life's estate planning specialist. I am therefore delighted that within 12 months we have not only been able to reinstate our range of trusts but are now in a position to expand the range with the introduction of the Discounted Gift Plan Absolute Trust, bringing additional choice to trust planning.<br /><br />Other features of the trust includes extended withdrawal options ranging from 0.5% to 10% offering wider flexibility to customers, single and joint settler options which also provides flexibility for family financial planning strategies and is available with Standard Life's Capital Investment Bond, Distribution Bond and International Bond.</p>
