Discretionary Trust Tax Exemption

[Brenno123]

My father wants to will 30k to his 3 year old grandchild via discretionary will trust. I understand that this trust will be exempt from the 6% initial tax and the 1% trust tax thereafter because it is solely setup for the benefit of a minor.
Am I correct in my understanding?

 

[Gordon Gekko]

Yes. DTT doesn't kick in until the child reaches 21.

 

[Brenno123]

Thanks gordon