Life Assurance And Inheritance Tax

chateauneufdupape

I am about to set up a life assurance policy for the benefit of my children in the event of my death and I wish to avoid IHT. As my children are quite young at the moment, I would like to put it into a trust fund until they are 21. What sort of trust fund should I put it into to avoid IHT? Would this form of trust allow the trustees to use some of the capital for the benefit of the children e.g. paying school fees?

dunstonh

The life company will have a range of trusts available. Your responsiblity at this stage is to just arrange the trust forms so it is in the right trust. It will be the responsibility of the trustees that you select to decide what fund if and when it happens to be used.

Which trust forms you should complete for the type of trust depends on your circumstances and there isnt quite enough info here to give you a direct answer.