The Sanlam Discounted Gift (Bare) Trust is an arrangement designed for individuals who wish to reduce their potential IHT liability while securing a regular stream of specified cash payments into the future.
Why choose this trust?
The trust will enable your clients to:
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Make a tax-efficient gift of assets into trust for the absolute benefit of named beneficiaries.
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Have peace of mind that these people (or their children) will ultimately benefit from the gift.
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Immediately reduce the value of his or her estate for IHT purposes.
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Through a discount, reduce the value of the gift that may become subject to IHT if they do not survive for seven years from the date of making the gift.
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Ensure that any growth on the original gift will immediately be free from IHT.
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Enjoy a tax-efficient income supplement.
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Avoid probate delays on death, as the trust assets can continue to be managed by the trustees or can be distributed by the trustees without going through probate.
Who might consider this trust?
The arrangement may be suitable for your clients with a potential IHT liability on death, who would like to reduce the value of their estate but still need access to a regular source of income.