Minimise tax on inheritance.

angela2011

Hi there,

not sure this is the right place to post but thought i'd try.

I'm looking to write a will and start getting my finances in order in case anything happens to me. The one thing that i'm not sure about is how do i go about minimising tax that will need to be paid from any life insurance or life assurance through my work.

In the past i've heard people talk about something that would help minimise this. Any advice or pointers would be greatly appreciated.

TIA.

dunstonh

The one thing that i'm not sure about is how do i go about minimising tax that will need to be paid from any life insurance or life assurance through my work.

The death in service is not paid into your estate. (a couple of caveats can apply). It is paid outside of the estate to the nominated beneficiary. Can you confirm whether it is a life assurance policy through the workplace or a death in service/death grant? This will help the posters here identify which rules apply.

xylophone

http://www.moneysupermarket.com/life-insurance/tax/

"Thankfully, you can legally avoid IHT on any life insurance payout by writing the policy ‘in trust’. It’s a pretty straightforward procedure and should not involve any extra cost."

If you are referring to payments from your pension on death, if a trust based scheme, it is likely that these benefits will also fall outside your estate and so outside IHT. You will need to check.