Life insurance and IHT

Top11

I want to setup life insurance in trust. Need to cover a IHT bill on my property for my children to pay iht.

I'm 47, the policy will be for 250k. What I want to know is which trust is best, absolute, discretionary or something else.
Also do I have to worry about the 10 year periodic charge, if so how do we avoid this to keep things simple?

Weighty1

You won't need to worry about the periodic charge since the policy value is below that of the nil-band allowance and typically people would use a flexible/discretionary trust since an absolute trust is deemed to be the asset of the named beneficiary and can therefore still be taken into account in some instances.

Top11

Weighty1 said:

You won't need to worry about the periodic charge since the policy value is below that of the nil-band allowance and typically people would use a flexible/discretionary trust since an absolute trust is deemed to be the asset of the named beneficiary and can therefore still be taken into account in some instances.

So use a flexible /discretionary trust. Should I not be executor and leave my brother to be?


To avoid periodic charges does it matter if any pets were made in the last 7 years?  I made 3 pets to friends totalling 70k, but not into any trusts. Can this trigger of any charges?
The life insurance in trust will be for 200k