Inheritance tax (IHT) bills can be met through the “simple and reliable” use of a whole-of-life insurance policy, reports the Telegraph.
The publication explains that in the case of civil partners or married couples, such a policy is taken out on a “joint life, second death” basis, where the payout provides a way to deal with the costs of IHT.
In order to ensure that couples benefit fully, the policy should be placed in trust and a will needs to be drawn up detailing the arrangement.
There are a number of types of whole-of-life policy and it may be advisable for those concerned with such issues to seek legal advice before making any investments to ensure that they are aware of all possible ramifications.
Following proposals by the Conservative party to raise the IHT limit to £1 million, the chancellor of the exchequer, Alistair Darling, announced an increase in the nil rate band for couples to £600,000 in his pre-Budget report.No results found.