4 thoughts on “Rich using life insurance to protect against inheritance tax”

  • John Wilson says:

    It might be worth mentioning that the policy needs to be written in trust, or the proceeds will just add to the estate.

  • Andy Woollon says:

    And assuming that the sum assureds and premiums are large, then to prevent 20 year periodic charges inside a discretionary trust, the Rysaffe principle of setting multiple trusts should be utilised.

  • Simon Malkiel says:

    Andy – that’s true for UK domiciled or deemed domiciled settlors; non-doms should be able to avoid IHT charges on the trust by using a non-UK situated life policy and paying the premiums outside the UK.

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