What is a Discounted Gift Trust?

A Discounted Gift Trust is a type of trust that allows an individual to make a gift of assets to a trust while retaining some degree of control over the assets and receiving a discount on the gift for gift tax purposes. The discount is based on the fact that the assets are being transferred to a trust, which can have certain restrictions on the use of the assets. The discount can be substantial, and can result in a significant reduction in gift taxes. The assets in the trust can be used for a variety of purposes, such as providing for beneficiaries, making charitable donations, or investing in a business.