The i quotes Katie Talbot on the merits of putting a life insurance policy into a trust
It was revealed this week that families paid £2.6 billion worth of inheritance tax between April and July this year alone.
Unbeknown to many, there is a little known trick that can help pay off an inheritance bill and enable families to enjoy the estate as if it were tax-free: a life insurance policy in a trust.
Katie Talbot, Partner, comments on the benefits of putting a life insurance policy into a trust:
“Many families treat life insurance as a form of investment for the next generation.
“They might not have many choices in terms of estate planning, if their wealth is all tied up in the family home for example.
“Placing life insurance in trust provides a means of funding the inheritance tax on death and if there are funds leftover, they can still be used to benefit the people named as potential beneficiaries of that trust. It can be a great way to carry out some meaningful estate planning and preserve the value of what you are leaving to your loved ones.”
Read the full article in The i here.