Quilter 3 Introduction The purpose of this guide is to give you the information you need to help you to decide whether the discounted gift trust is a suitable tax-planning arrangement for you. It explains what the trust is, who is involved, how it works and how those you wish to provide for when you die can benefit from it. Please discuss this with your financial adviser before making any decisions. The decision to place some of your assets into trust is such an important step, for you and others involved, that you should always take professional advice before making this decision. Discounted gift trusts are specifically designed to help reduce your inheritance tax (IHT) liability whilst still allowing you the benefit of receiving regular withdrawals. You will not be surprised to learn that they are somewhat complex in structure. However, this is necessary to ensure they continue to provide the benefits they are used for. Because of this complexity, it is particularly important that you consider all key aspects before making a commitment that cannot be changed. This guide aims to explain in plain English the way the discounted gift trust works. Inevitably in describing a legal document, it is sometimes necessary to use technical phrases. Where this is unavoidable, we have included explanations. Your financial adviser will also be able to provide further clarification. As the trust arrangement may last many years, we have aimed in this guide to provide you with all the information you, and those who may deal with your estate after your death, may require over this period. As a result, some of the information may not appear applicable at the moment. However, if you do decide to set up a discounted gift trust, this guide can also act as a useful reference when questions arise.