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Family Income Benefit and Inheritance Tax
DaveTheHedgehog
Posts: 20 Forumite
Hello (I've also posted this on the cutting tax board)
I have a question.
My Wife and I both have separate Family Income Benefit insurance.
My Wife owns the plan which pays out on my death.
I own the plan which pays out on her Death.
They are each for £20,000 a year for 25 years (starting a few months ago).
The purpose of the plans are to look after the family if one or both of us die.
My question is, if we both died tomorrow, would there be inheritance tax to pay?
This is because 25 years * 20,000 = 500,000 for each Policy.
For my wife and I this would be 1,000,000 pounds, which would take us over the 600,000 threshold?
Does anyone know how the Inland Revenue would treat this on second death?
Thanks
David
I have a question.
My Wife and I both have separate Family Income Benefit insurance.
My Wife owns the plan which pays out on my death.
I own the plan which pays out on her Death.
They are each for £20,000 a year for 25 years (starting a few months ago).
The purpose of the plans are to look after the family if one or both of us die.
My question is, if we both died tomorrow, would there be inheritance tax to pay?
This is because 25 years * 20,000 = 500,000 for each Policy.
For my wife and I this would be 1,000,000 pounds, which would take us over the 600,000 threshold?
Does anyone know how the Inland Revenue would treat this on second death?
Thanks
David
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