The life assurance solution to IHT planning

An unavoidable outcome of the 2006 Finance Act is that those who wish to carry out some form of gift-based planning, while maintaining flexibility of control of beneficiaries, will face an inevitable cap on the amount they can gift to trust. Whether a gift trust or a discounted gift trust (DGT), any gift in excess of the nil rate band will attract an immediate charge to inheritance tax (IHT) at 20%. What then for those whose planning aspirations extend beyond the use of a nil rate band every seven years but for whom a straightforward gift or an absolute trust is a bridge too far? Might ...