IHT410 form - which life insurance policies to include

halifaxred

Thanks for this interesting discussion re IHT410 !

I am in exactly the same position !

In my case, my mum's (now deceased) insurance policy was linked to an absolute loan trust, with me and my mum as trustees, and me and my sister as beneficiaries. On death, the benefits of the plan have been paid out and we have a chargeable event.

What I have done is to enter the trust details in the section on box 7 of IHT403 (Gifts made within seven years before death), and I am assuming that answering "yes" to box 12 of IHT 410 just refers HMRC to the trust I have set out in IHT403.

It would be really interesting to know the advice you got from HMRC on all this, or how any others have dealt with similar situations.

(interesingly, in "discounted Gift and Income Trust (creating fixed asset interests" (by Scottish Widows) available on line,
their advice is to answer "no" to question 37 on IHT410 (did the deceased pay premiums on any life assurance policies, annuities or other products which are payable either to their estate to another person or which continue after death ?") on the grounds that "any inheritance tax liability will arise in relation to the trust, not to the underlying investment bond.

I guess their must be people out there that understand all this stuff, but its quite confusing !