5 October 2006. Sterling, Zurich's investment brand, has launched a new trust to give intermediaries and their customers greater choice and flexibility when approaching inheritance tax (IHT) planning.
Available from 03 October 2006, the Sterling Discretionary Discounted Gift Trust (DDGT) has been introduced in response to the recent changes to the taxation of some trusts and is designed to demonstrate Zurich's commitment to offering intermediaries and their customers solutions that respond to the changing world we live in.
As a discretionary trust, DDGT will offer greater flexibility than some other trusts. Changes to the beneficiaries can be made at any time during the trust period, and none of the trust fund is included in any of the beneficiaries' estates for IHT purposes.
The launch of the new trust means that intermediaries and their clients now have a choice of two Discounted Gift Trusts through Zurich. The new DDGT will appeal to clients who require the added flexibility to be able to change the beneficiaries at any time. Whereas, the existing Sterling Discounted Gift (Bare) Trust remains a viable option for those who are prepared to make no changes to the beneficiaries but want to avoid the IHT treatment applying to discretionary trusts.
Paul Wright, Zurich's Investment Management Director, comments:
"IHT planning is an increasingly important area of the financial planning process and the new trust has been designed to complement our existing range of trusts, providing advisers and their customers with a range of market leading solutions."
For more information:
Please contact Nicola Bryson,
Senior Media Relations Consultant
01793 503354 or 07734 336281
Notes to Editors
As the DDGT is a full discretionary trust and not an Interest In Possession trust, it is treated for IHT as a Chargeable Lifetime Transfer. As such, all transfers above £10,000 (or £40,000 cumulatively over 10 years) must be reported to HMRC.
Zurich Financial Services Group (Zurich) is an insurance-based financial services provider with a global network of subsidiaries and offices in North America and Europe as well as in Asia Pacific, Latin America and other markets. Founded in 1872, the Group is headquartered in Zurich, Switzerland. It employs approximately 55,000 people serving customers in more than 120 countries.
